Ascent Industries is making headlines and the reasons why are very, very bad news for investors that could mark the beginning of the end for the embattled cannabis producer.
Today, Ascent announced its wholly-owned subsidiary in Nevada, Sweet Cannabis, “has received notice… of the potential suspension, revocation or non-renewal of Sweet Cannabis’ Master Marijuana License in Clark County, Nevada” for three reasons, according to a statement:
- An SC hosted cannabis consumption event in the H-1 Zone Resort Corridor in Las Vegas
- Record keeping and inventory errors
- Parent company license suspension by Health Canada
Sweet Cannabis representatives have to attend a hearing on Feb. 28 to “show cause why the License shall not be permanently suspended, revoked or non-renewed” in the state of Nevada, which means the end of February will be very busy for Ascent Industries as Health Canada has also given the company until Feb. 20 to make submissions to try to keep its licenses in Canada.
With its Canadian operations currently suspended and its Nevada facility also facing suspension (or worse!), that leaves Ascent’s Oregon operations the lone location not at risk 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 very brief press release on Feb. 14.
If Sweet Cannabis loses its license in Nevada, it would be disastrous for Ascent, putting its very existence in jeopardy as Ascent Industries said on Feb. 7:
“Should the Company not be successful in its attempt to have the Licences re-instated so that it may commence operations and generate revenue and cash flow in Canada, the Company’s ability to continue as a going-concern may be in doubt.”
Ascent Industries Timeline
- Health Canada conducts inspection of Agrima
- Health Canada informs Agrima that it “did not meet all of its record keeping and other compliance requirements” and issues partial suspension of licenses
- Ascent announces “Agrima has commenced the process of addressing the identified issues and has initiated discussions with Health Canada for the reinstatement of the licenses”
- Ascent announces that it:
- Added more staff for QA and regulatory compliance
- Audited its “its record-keeping controls and procedures”
- “Relieved (ie. fired) certain managerial staff”
- Ascent announces “Health Canada has authorized the following activities in connection with Agrima’s cannabis plants: cultivation, trimming, curing, sanitation, harvesting and maintenance of cannabis.”
- Ascent announced it “has made formal submissions to Health Canada for the reinstatement of the Agrima licences and has been informed by Health Canada that the Company’s submissions are under review. However, Health Canada has not indicated when the review will be completed.”
- Sweet Cannabis hosts cannabis consumption event in Las Vegas
- Ascent’s management team resigns
- Ascent announces that Health Canada intends to revoke Agrima’s licenses.
- Health Canada still intends to revoke licenses but gives the company until Feb. 20 to make any submissions
- Ascent Accepts Director Resignation
- Ascent Industries Wholly-owned Subsidiary Receives Notification of Potential Suspension, Revocation or Non-renewal of Business License
Featured image courtesy of Proactive Investor.