On July 17, 2023, Avant Brands Inc. completed the closing of a $3.5 million credit facility, which will be secured by the real-estate of the Company's non-operational and non-licensed real property owned by GreenTec Holdings Ltd. and guaranteed by certain subsidiaries of the Company, including 3PL, Flowr Okanagan and GreenTec Holdings. The Credit Facility will bear an annual interest rate of 15%, as will be adjusted for any upward change in the Prime Rate from 8.25% at the time of any advance, with a 3-year amortization period commencing as the Credit Facility is drawn upon in tranches of a minimum amount of $500,000, subject to the satisfaction of customary conditions precedent, with a condition that Avant completes a minimum draw-down of $500,000 by July 31, 2023, subject to the satisfaction of customary conditions precedent. In connection with closing of the Credit Facility, the Company also issued 1,750,000 common share purchase warrants to the lender to acquire common shares in the capital of the Company at an exercise price of $0.30 per Share on or before July 17, 2026.

The Warrants will vest and become exercisable in accordance with the draw down schedule for the Credit Facility.