Dec. 12 at 4:20 AM
$AVTBF Volatile cash flows are a common characteristic among cannabis stocks in this fragmented and overcrowded market.
That said, fundamentals at Avant are moving in the right direction over the long term, and management has demonstrated significant confidence through the recent full repayment of the secured convertible debenture.
If the company can maintain and grow positive quarterly free cash flow (FCF) from this point forward, it would represent a major catalyst for the stock price. Based on current projections, the company appears to be trading attractively at approximately 1.5x projected 2025 FCF, using the published 14 million fully diluted shares outstanding, which account for all warrants and options.
Should Avant Brands prove that this positive cash flow is sustainable, a significant re-rating of the equity valuation is highly probable. Even applying a conservative 10x FCF multiple, the stock could potentially reach
$4+ within the next 12 months.
This is all my personal opinion.