Business
Avant Brands Announces Execution of Stalking-Horse Purchase Agreement to Purchase The Flowr Group (Okanagan) Inc.
Avant 50% joint venture executes binding offer to purchase Flowr Okanagan, including Flowr'...
About this update from Avant Brands Inc
[{"type":"text","content":"Avant Brands Announces Execution of Stalking-Horse Purchase Agreement to Purchase The Flowr Group (Okanagan) Inc.Avant 50% joint venture executes binding offer to purchase Flowr Okanagan, including Flowr's Kelowna facility, for $3.88 millionProvides Avant with combined facilities of approximately 185,000 square ftExpected to increase Avant's production capabilities by 60%Would result in Avant being one of the largest indoor, ultra-premium producers in CanadaKELOWNA, BC / ACCESSWIRE / November 1, 2022 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) (\"Avant\" or the \"Company\"), a leading producer of innovative, premium handcrafted cannabis products, is pleased to announce that 1000343100 Ontario Inc. (the \"Purchaser\"), an entity of which Avant owns 50% of the issued and outstanding shares, has entered into a stalking horse purchase agreement (the \"Stalking Horse Purchase Agreement\") to acquire all of the issued and outstanding shares (the \"Purchased Shares\") in the capital of The Flowr Group (Okanagan) Inc. (\"Flowr Okanagan\"), a subsidiary of The Flowr Corporation (FLWR; FLWPF) (\"Flowr\"), in connection with the Flowr Group's (as defined below) proceedings under the Companies' Creditors Arrangement Act and its related sales and investment solicitation process (\"SISP\"). The authorization by Flowr Okanagan and The Flowr Canada Holdings ULC (\"Flowr ULC\") to enter into the Stalking Horse Purchase Agreement and its acceptance as the Stalking Horse Bid (as defined in the SISP) is subject to approval by the Ontario Superior Court of Justice (Commercial List) (the \"Court\"). It is also anticipated that the Purchaser will change its name to Avant Brands K1 Inc. prior to closing.\"Continuing on from a strong record third quarter, we anticipate that the overall global demand for Avant's products exceeds our current output\" said Norton Singhavon, Founder and Chief Executive Officer of Avant. \"As a result, Avant has entered into the Stalking Horse Purchase Agreement in order to satisfy this demand. Flowr has developed an 85,000 square foot facility built to GMP standards, which is conveniently located in Kelowna, British Columbia, making this a natural fit for the Avant portfolio.\"The Stalking Horse Purchase Agreement was entered into between the Purchaser, Flowr Okanagan and Flowr ULC. The purchase price payable by t...