Ascent Industries is generating headlines and the motives why are quite, quite undesirable news for investors that could mark the starting of the finish for the embattled cannabis producer.
Right now, Ascent announced its wholly-owned subsidiary in Nevada, Sweet Cannabis, “has received notice… of the possible suspension, revocation or non-renewal of Sweet Cannabis’ Master Marijuana License in Clark County, Nevada” for 3 motives, according to a statement:
- An SC hosted cannabis consumption occasion in the H-1 Zone Resort Corridor in Las Vegas
- Record maintaining and inventory errors
- Parent organization license suspension by Wellness Canada
Sweet Cannabis representatives have to attend a hearing on Feb. 28 to “show bring about why the License shall not be permanently suspended, revoked or non-renewed” in the state of Nevada, which suggests the finish of February will be quite busy for Ascent Industries as Wellness Canada has also provided the organization till Feb. 20 to make submissions to attempt to maintain its licenses in Canada.
With its Canadian operations presently suspended and its Nevada facility also facing suspension (or worse!), that leaves Ascent’s Oregon operations the lone place not at danger of losing its license- at least for now.
In other news, Ascent Industries announced that it has accepted the resignation of board director Mark Brown in a quite short press release on Feb. 14.
If Sweet Cannabis loses its license in Nevada, it would be disastrous for Ascent, placing its quite existence in jeopardy as Ascent Industries stated on Feb. 7:
“Should the Corporation not be thriving in its try to have the Licences re-instated so that it may well commence operations and produce income and money flow in Canada, the Company’s capacity to continue as a going-concern may well be in doubt.”
Ascent Industries Timeline
- Wellness Canada conducts inspection of Agrima
- Wellness Canada informs Agrima that it “did not meet all of its record maintaining and other compliance requirements” and concerns partial suspension of licenses
- Ascent announces “Agrima has commenced the procedure of addressing the identified concerns and has initiated discussions with Wellness Canada for the reinstatement of the licenses”
- Ascent announces that it:
- Added much more employees for QA and regulatory compliance
- Audited its “its record-maintaining controls and procedures”
- “Relieved (ie. fired) specific managerial staff”
- Ascent announces “Health Canada has authorized the following activities in connection with Agrima’s cannabis plants: cultivation, trimming, curing, sanitation, harvesting and upkeep of cannabis.”
- Ascent announced it “has produced formal submissions to Wellness Canada for the reinstatement of the Agrima licences and has been informed by Wellness Canada that the Company’s submissions are beneath evaluation. Having said that, Wellness Canada has not indicated when the evaluation will be completed.”
- Ascent’s management group resigns
- Ascent announces that Wellness Canada intends to revoke Agrima’s licenses.
- Wellness Canada nonetheless intends to revoke licenses but offers the organization till Feb. 20 to make any submissions
- Ascent Accepts Director Resignation
- Ascent Industries Wholly-owned Subsidiary Receives Notification of Prospective Suspension, Revocation or Non-renewal of Business enterprise License
Featured image courtesy of Proactive Investor.