Avante Corp Inc. Announces Acquisition of 70% Equity Interest in City Wide Locksmiths Ltd. and Implementation of Internal Reorganization

TORONTO, Apr. 1, 2017  – Avante Corp Inc. (TSXV: XX)(“Avante” or the “Company”)is pleased to announce that it has acquired a 70% equity interest in City Wide Locksmiths Ltd. (“City Wide Locks”) pursuant to share purchase agreements dated April 1, 2016 between Avante and certain departing shareholders for an aggregate purchase price of approximately $2.6 million.

Based in the Greater Toronto Area and founded in 1973, City Wide Locks provides residential and commercial locksmith services and is a distributor of decorative door hardware while operating its show room and retail outlet under the brand ‘Antique Door Hardware’.  Avante’s security operations and City Wide Locks operate with significant client overlap that makes this acquisition quite compelling.  As George Rossolatos, CEO of Avante, stated, “Avante anticipates numerous cross selling opportunities with City Wide Locks that are expected to significantly enhance our own product offerings.  City Wide Locks hold the keyways to many thousands of Toronto homes and businesses that can only be duplicated and serviced by their locksmiths and furthermore, the majority of these clients are purchasers of security services.  We think this combination is a tremendous fit.   In addition, City Wide Locks’ decorative hardware business is recognized as the highest value-added provider in the GTA.  Our clients all have secure lock and hardware requirements that we will now be able to address. This is consistent with our strategy of making acquisitions that are a logical extension of our own core business in the security space.  This investment was made at under five times Adjusted EBITDA which we believe is a prudent deployment of Avante’s capital.”

Danny Shearer, City Wide Locks’ President and the driving force behind the business and its growth will remain with the company as its President in charge of day to day operations and as holder of a 25% equity interest. The remaining equity interests are held by family members of Mr. Shearer who will remain active in the company’s operations.  Effective today, Avante entered into a shareholders’ agreement with Mr. Shearer and the other family member equity interest holders relating to the business and affairs of City Wide Locks.

Mr. Shearer who will continue spearheading City Wide Locks strategy and direction in collaboration with Avante and its management team commented on the acquisition as follows: “On behalf of City Wide Locksmiths, we are very excited to be joining the Avante group of companies.  Our business was founded over 40 years ago by my late father Harold Shearer to ensure families and businesses had the ultimate level of protection in their choice of locks, keys and door hardware.   He would be very proud to know that with this transaction, the brand he created is poised to grow and become further entrenched as Canada’s preeminent lock and decorative hardware business.    City Wide Locksmiths shares many customers with Avante in the high end residential and commercial markets and we intend to create cross selling programs so clients can obtain security systems, services, response, monitoring and locksmith services seamlessly only dealing with one provider.    Through our decorative door hardware division, Antique Door & Hardware, we (like Avante in its high end security offerings) cater to preeminent architects, designers and builders in the high end home markets, many of which we have in common.  We believe there is a great opportunity to provide better and more convenient service to these shared customers and to many new ones as a result of transaction.  We look forward to this very exciting next stage in our brand’s development and growth.”

City Wide Locks generated over $5 million of revenue profitably for the calendar year ended December 31, 2015 and is immediately accretive to Avante.  A dividend policy has been instituted by City Wide Locks pursuant to which it is intended that the board declare dividends quarterly to its shareholders.

Effective immediately, all Avante Security rapid response and monitored clients will become part of City Wide Locks ‘Exclusive Client Program’ and be entitled to priority service and preferential pricing on locksmith and door hardware offerings.

There are no finders’ fees payable in connection with the transaction, the transaction was negotiated on an arm’s length basis and does not result in a change of control for Avante.  City Wide Locks has available to it a line of credit with a Canadian chartered bank for up to $300,000 which at present is undrawn.  Avante’s acquired equity interest in City Wide Locks represents approximately 15% of Avante’s assets post-acquisition.

Internal Corporate Reorganization

Avante is pleased to announce that, further to its press release issued November 17, 2015, the amalgamation of two of its wholly-owned subsidiaries, LVS Inc. and Avante Security Inc., into one wholly-owned subsidiary has been consummated pursuant to articles of amalgamation effective today. The newly amalgamated company, is known as Avante Security Inc., and with the implementation of the internal reorganization, Avante can begin to realize on synergies among its group of companies as its corporate structure has been simplified and its administrative costs reduced.

About Avante Corp

Avante Corp Inc. (XX.V) is a Toronto based provider of technology enabled security solutions. We acquire, manage and build industry leading businesses which provide specialized, mission-critical solutions that address the needs of our customers. Our businesses continuously develop innovative solutions that enable our customers to achieve their objectives. With an experienced team and a proven track record of solid growth, we are taking steps to establish a broad portfolio of security businesses to provide our customers and shareholders with exceptional returns. Please visit our website at www.avantecorp.ca and consider joining our investor email list.

FORWARD LOOKING STATEMENTS

All statements in this news release, other than statements of historical fact, may constitute “forward looking information” with respect to Avante within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. This forward-looking information includes statements with respect to, among other things, the effective date of the consolidation of the Common Shares.

Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward looking information, including, without limitation, the Company being unable to complete the steps necessary to cause the consolidation to occur on the timelines stated in this news release and the risks identified in Avante’s Management Discussion & Analysis, Annual Information Form and other continuous disclosure, which list is not exhaustive of the factors that may affect any of Avante’s forward-looking information. In connection with the forward-looking statements contained in this and subsequent press releases, Avante has made certain assumptions about its business and the industry in which it operates and has also assumed that no significant events occur outside of Avante’s normal course of business. Although management believes that the assumptions inherent in the forward-looking statements are reasonable as of the date the statements are made, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein. Avante’s forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and Avante does not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, readers should not place undue reliance on forward-looking information as there can be no assurance that the credit agreement will be entered into or on the terms described in this news release or at all.

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