Avant Brands' Subsidiary GreenTec Acquires 3PL Ventures

Author: Vuk Zdinjak | February 02, 2023 09:54am

GreenTec Holdings Ltd., a wholly-owned subsidiary of Avant Brands Inc., (OTCQX:AVTBF) (TSX:AVNT) (FRA:1BU0) closed its previously announced acquisition of the remaining 50% equity stake in 3PL Ventures Inc. from F-20 Developments Corp. on February 1, 2023, pursuant to a share purchase agreement among Avant, GreenTec and the F-20 Developments dated December 15, 2022.

The aggregate purchase price payable pursuant to the terms of the agreement was equal to $15 million which was satisfied as follows:

• $1.5 million cash paid on closing;

• $9.5 million payable by way of a convertible debenture with a conversion price of $0.50 per share in the capital of Avant, an interest rate of 10% per annum and a maturity date of August 1, 2024 (the "convertible debenture");

• The issuance of 16.43 million Avant shares (the "escrow shares");

• The issuance of 5.82 million Avant shares (the "non-escrow shares");

• The issuance of 5 million common share purchase warrants to acquire Avant shares at an exercise price of $0.50 on or before February 1, 2025, subject to acceleration by the company in the event that the volume weighted average trading price of the Avant shares on the TSX exceeds $1.25 for a period of 20 consecutive trading days.

Pursuant to the terms of the convertible debenture, Avant is required to repay the principal amount of $9.5 million in quarterly installments of $1.58 million commencing on April 28, 2023.

The escrow shares will be released to F-20 Developments in three tranches on the four-month, eight-month and 12-month anniversary of closing. Both the escrow shares and the non-escrow shares are also subject to a mandatory statutory hold period of four months and one day from the date of issuance.

Prior to closing of the acquisition, Avant owned 50% of the issued and outstanding shares in the capital of 3PL, a joint venture with F-20 Developments. Avant now owns 100% of the issued and outstanding shares in the capital of 3PL.

Benzinga's Cannabis Capital Conference Is Back

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition. This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now. Prices will surge very soon.

Photo: Benzinga edit with photo by Elsa Olofsson and Piron Guillaume on Unsplash

 

Posted In: AVTBF TSX:AVNT