VANCOUVER, Feb. 7, 2019 /CNW/ – Ascent Industries Corp. (CSE: ASNT) (“Ascent” or the “Company”) announces that it has received further correspondence from Health Canada (the “Agency”) regarding the suspension and proposed revocation of the Canadian producer’s licence and dealer’s licence (collectively, the “Licences”) issued by the Agency to Agrima Botanicals Corp (“Agrima”), a wholly-owned subsidiary of the Company.
Health Canada has repeated its previous position that the Company has failed to demonstrate that the suspension, and proposed revocation, of Agrima’s Licenses is unfounded, or that the failures that gave rise to the suspension were rectified. The Agency re-iterated its concerns that unauthorized activities with cannabis took place after the Canadian producer’s licence and dealer’s licence were granted to Agrima, in contravention of the ACMPR and Controlled Drugs and Substances Act (now regulated under the Cannabis Act). Health Canada has therefore advised that it still intends to revoke the Licenses, and has given Ascent until February 20, 2019 to make any additional submissions.
Ascent previously launched an investigation into these alleged contraventions of the ACMPR and Controlled Drugs and Substances Act (now regulated under the Cannabis Act) which is ongoing, including a forensic analysis of the Company’s books and records.
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. As previously disclosed by the Company, a strategic review process is continuing, with a view to stabilizing the Company’s financial position and maximizing the value of the Company.
Ascent will provide further updates as available.