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Avant Brands AVTBF Stock will rise with increased revenues and profits


D. H. Taylor
(@cannabisinvestingnewsletter)
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Joined: 1 year ago
Posts: 260
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Avant Brands AVTBF stock is a company I have had my eye on for some time.  Formerly GTEC Holdings GGTTF stock, Avant Brands AVTBF stock did a rebrand that was more in line with its current direction.  The focus now is premium branding and Avant Brands is no longer a vertically integrated cannabis company.  The premium branding is playing out nicely; Avant Brands is constantly selling out of its products and cannot keep up with demand.

The demand aspect is what I really wanted to focus on.  Despite there being strong demand, Avant Brands is a fraction of its potential as they await the last portion of licensing that will afford significant expansion potential.  Future potential is for some 12,000 KG of product.  Given the pricing point, Avant Brands commands, some $7.50 CAD per gram, this will push revenues to $90M.  And, since Avant Brands is sharing production facilities with licensing agreements, this translates into reduced costs for some of its operations.  Reduced costs usually translate into higher profit potential.

But, I think it might be a bit of time, perhaps up to 24 months, before sizable amounts of capacity are actually used.  In fact, with my projections, I only used about $60M in total revenues.  This would mean that if Avant Brands were to push their products to higher levels, my projections would prove to be low.  Not a bad problem to have.

This topic was modified 6 days ago by D. H. Taylor

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