Ascent Industries Receives Approval of Asset Purchase Agreement for the Sale of Canadian Business
VANCOUVER, March 26, 2019 /CNW/ – Ascent Industries Corp. (CSE: ASNT) (“Ascent”) advises that on March 25, 2019, Ascent, together with its subsidiaries, Agrima Botanicals Corp., Bloom Holdings Ltd., Bloom Meadows Corp., Pinecone Products Ltd., and Agrima Scientific Corp. (collectively, the “Vendors”) were granted an Approval and Vesting Order by the Supreme Court of British Columbia (the “Vesting Order”). The Vesting Order was issued in connection with the proceedings under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA Proceedings”) in respect of the previously announced asset purchase agreement (the “APA”) with BZAM Management Inc. (the “Purchaser”), pursuant to which the Vendors have agreed to sell to the Purchaser substantially all of the assets comprising the Canadian business of the Vendors and the Purchaser has agreed to assume certain liabilities of the Vendors, including the Vendors’ obligations to purchase a greenhouse located in Pitt Meadows, British Columbia. The aggregate value of the transaction is approximately $41.5 million, comprised of $29 million of cash consideration to be paid for the Canadian assets under the APA and the assumption of liabilities of approximately $12.5 million. Closing of the transactions contemplated by the APA are expected to occur on or before April 3, 2019.
Ascent through its subsidiaries will continue to own the assets related to Ascent’s cannabis cultivation, production, distribution, research and product development business outside of Canada in Oregon, Nevada and Denmark.
About Ascent Industries Corp.
The Company’s operations currently include facilities in British Columbia, Canada; and in Oregon and Nevada in the United States. In Canada, Ascent (through its wholly-owned subsidiary, Agrima) is a licensed producer (currently suspended) under the Cannabis Act and Regulations, with licences to cultivate cannabis and produce cannabis extracts. In addition, the Company is a licensed dealer (currently suspended) under the Cannabis Act and Cannabis Regulations, with the ability to produce, package, sell, send, transport and distribute medically focused cannabis products in Canada to other licensed entities and internationally in jurisdictions where medical cannabis is legal. In the United States, the Company holds licences in Oregon (for processing and for distribution of cannabis to any licenced entity in the state) and in Nevada (for cultivation and for production, processing and wholesale distribution of cannabis). In Europe, Agrima ApS, a Danish company and wholly-owned subsidiary of Ascent, has submitted licence applications for a Wholesaler Dealers Licence and Controlled Drug Licence in Denmark, and applications for the approval of eight products to the Danish Medical Cannabis Pilot Program.