Not for distribution to U.S. news wire services or for dissemination in the United States

TORONTO, Nov. 21, 2019  – Avante Corp Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the “Company”) is pleased to announce its results for the period ended September 30, 2019 (all amounts in Canadian dollars, unless otherwise indicated).


Three months ended September 30,Three months ended September 30,
$ in thousands, unless otherwise noted20192018
Gross profit[1]3,6841,741
Gross profit margin[2]31.4%29.7%
Adjusted EBITDA[1]72369
Net income (loss) attributable to Avante shareholders(67)(461)
Comprehensive income (loss) attributed to Avante shareholders(250)(494)
Basic and fully diluted income per share($0.003)($0.005)
Basic and fully diluted Adjusted EBITDA per share$0.034$0.004

“We continue to execute on our strategic vision through the recently announced acquisition of A.S.A.P. Secured Inc. (“ASAP”), a commercial security services provider, the convertible debenture private placement with Fairfax Financial Holdings (“Fairfax”), and return to positive EBITDA and Adjusted EBITDA,” said Craig Campbell, CEO of Avante. “I am very pleased with our results year to date and the strategic initiatives undertaken in order to improve our operating results, bolt-on other like businesses, and the ability to raise capital for further growth.”

“Our acquisition pipeline remains healthy and robust, and the recently announced financing provides us ample room to fund further acquisitions. I look forward to closing the ASAP and Fairfax transactions so the team can focus on operational excellence and continuing to develop our pipeline for us to achieve our stated objectives of $500 and $30 million in revenue and adjusted EBITDA, respectively.”


  • Generated revenues of $11.7MM for the quarter ended September 30, 2019 which represented 100.5% YoY2 growth, with pro-forma TTM of $46.4MM, $70.9MM including ASAP Secured Inc.3
  • Organic year over year revenue growth of 9.6% vs. 7.4% in Q1
  • Generated gross profit of $3.7MM, or a 31.4% gross margin, for the period ended September 30, 2019 which represented 111.5% YoY2 growth.
  • Operating expenses (net of depreciation, amortization, share based payments and interest expenses) increased $1.3MM to $3.1MM in Q2 F20, $0.6MM of the increase is attributable to acquired companies. In comparison to Q1 F20, operating expenses decreased by $0.25MM
  • Generated Adjusted EBITDA of $0.723MM or 6.2%
  • Corporate operating expenses of $0.56MM or 4.7% of revenues
  • Strong balance sheet with $0.7MM of cash on hand, assets of $33.0MM, and shareholders’ equity of $16.8MM, with undrawn credit facilities of approximately $9.0M


  • On November 13, 2019, the Company entered into an agreement with Fairfax where Fairfax will invest up to $18.0MM through a private placement of unsecured convertible debentures at a 7.0% coupon.
  • On November 13, 2019, the Company entered into a definitive share purchase agreement to acquire all of the outstanding shares of ASAP for $10.5MM on a cash free and debt free basis. ASAP is a national provider of physical security services with a focus on industrial and national account security solutions.
  • On November 20, 2019, Elizabeth Cynthia Tripp, a Director of the Company, resigned from the Board of Directors. “We thank Cindy for her dedication to Avante and guiding the organization during her tenure.” said Craig Campbell, CEO.


Avante will be hosting a conference call to discuss the aforementioned results on Friday, November 22, at 8:30 AM EST.

Dial in details are as follows: 

Local: (+1) 416-764-8658
Toll Free: (+1) 888-886-7786
Conference ID: 94859484

Playback details below, available until December 16, 2019:

Local: (+1) 416-764-8692
Toll Free: (+1) 877-674-7070
Playback Pin: 859484 #

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities described herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

About Avante Corp

Avante Corp Inc. (XX.V) is a Toronto based provider of high end security services. 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 and consider joining our investor email list.

Forward-Looking Information

All statements in this press 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 often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or a variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information includes statements with respect to, among other things, the intention to create a platform capable of supporting a business with significantly greater scale, Avante’s strategic plan, Avante’s intentions to engage in mergers and acquisitions in the near term, Avante’s intentions to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to achieve operational efficiencies and provide a better overall customer experience, Avante’s run-rate, opportunities to grow Avante’s revenue and Adjusted EBITDA profile, investments in corporate infrastructure, Avante’s ability to execute and integrate larger acquisitions, and the expected trajectory of corporate costs as a percentage of revenue. 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 ability to identify, acquire and integrate suitable targets for mergers and acquisitions, the ability to control corporate costs, and the list of risk factors 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.

Non-IFRS Financial Measures

References to EBITDA are to net income before interest, taxes, depreciation and amortization. References to Adjusted EBITDA are to net income before interest, taxes, depreciation, amortization of intangibles, share-based payments, acquisition, integration and / or reorganization costs, expensing of CWL fair value adjustment per IFRS less non-controlling interest’s share. Neither EBITDA nor Adjusted EBITDA is an earnings measure recognized by International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS. Management believes that Adjusted EBITDA is an appropriate measure in evaluating Avante’s performance. Readers are cautioned that neither EBITDA nor Adjusted EBITDA should be construed as an alternative to net income (as determined under IFRS), as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) or as a measure of liquidity and cash flow. Avante’s method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, Avante’s Adjusted EBITDA may not be comparable to similar measures used by other issuers.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[1] Adjusted EBITDA, EBITDA, Gross Profit and Gross Profit Margin are non-IFRS measures. See Description of Non-IFRS Measures.

[2] YoY or Year-over-Year represents the percentage change from Q2 F19 to Q2 F20

[3] Pro forma revenues for TTM or trailing twelve month period, from Oct 1, 2018 to Sept 30, 2019, include revenues from October 1, 2018 to
the date of closing of the Intelligarde acquisition, which was Nov 30, 2018. Reference to pro forma revenues with ASAP also include revenues
for ASAP from October 1, 2018 to September 30, 2019.