Avant Brands Inc.

Thank you for standing by. This is the conference operator. Welcome to the Abbott Brands third quarter fiscal 2023 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and then zero. I would now like to turn the conference over to Alyssa Berry, Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome and thank you for joining Avant Brand's Q3 Fiscal 2023 Results Conference Call. My name is Alyssa Berry, Investor Relations for Avant. Speaking on our call today is Avant's founder and CEO, Norton Singhaven. and Chief Financial Officer Miguel Martinez. Avant's Chief Operating Officer David Lin is also present and will be participating in our Q&A session. Our Q3 2023 results were disseminated yesterday and are available on CNR Plus and on our website at www.avantbrands.ca. Before we get started, I wish to remind everyone that some statements made on today's call are forward-looking in nature and therefore are subject to certain risks and uncertainties, which are all outlined in detail in our regulatory filings available on CDAR+. On this call, we will refer to the company as Avant Brands or Avant. I will now turn the discussion over to Miguel to share the company's financial highlights. Norton will then provide a strategy update. Please go ahead, Miguel.

Thank you, Alyssa, and good afternoon, everyone. Thank you for joining us today. We are pleased to report another strong quarter for Avant Brands. In Q3 2023, we continued our trend of delivering positive year-over-year sales growth and achieved several significant milestones. Diving into some of our key financial metrics for the third quarter ended August 31, 2023. We reported gross revenues of $7.5 million, representing a 61% increase compared to Q3 last year. This also represents our fifth consecutive quarter of positive cash flow from operations, reinforcing our commitment to sustainable growth. Our overall weighted average net selling price of $4.17 reflects changes in the recreational sales product mix and some out of spec sales in the export business to business market. While we continue to hold pricing for the company's flagship black market brands, as well as high margin flower sales internationally. Our cash flow from operations after changes in non-cash working capital was $1.8 million, demonstrating our ability to generate positive cash flow consistently. Successful integration of flour into our cultivation framework in February 2023 contributed significantly to the growth of our gross revenue margin, adjusted EBITDA and cash flow from operations. This is a significant achievement with only six months of completing the acquisition. And we anticipate that over the coming quarters, flour will generate meaningful cash flows to the event group of companies. Corporate overhead, net of depreciation and share based compensation was $2.9 million for the quarter and $6.9 million year-to-date, which is a 75% and 40% increase over the prior year comparative period, respectively. This increase is primarily due to growth initiatives, increased regulatory fees, performance bonuses, and estimated professional and audit fees. We continue to look at all aspects of our business to stay lean and efficient. And finally, we achieved an adjusted EBITDA of $900,000 for the quarter with an adjusted EBITDA margin of 14%. During the quarter, the company also secured a $3.5 million credit facility to ensure that Avant remains capitalized as we bridge to stronger future cash flows. As of August 31st, we had drawn down $2 million on the facility, and we currently have $1.5 million remaining. With that, I will turn the call over to our CEO and founder, Norton Singhaven, to expand on our operations and provide an update on strategic initiatives.