Canadian cannabis firm Ascent Industries has been granted creditor protection by the Supreme Court of British Columbia to deal with liquidity points, brought about “in large part” by the suspension of its licenses.
Health Canada notified British Columbia-based Ascent in September it was suspending the licenses of its subsidiary, Agrima Botanicals, over infractions associated to noncompliance with the Access to Cannabis for Medical Purposes Regulations and the Narcotic Control Regulations.
Since then, Agrima did not show to federal authorities that a suspension in Canada is unfounded.
While beneath Companies’ Creditors Arrangement Act protection, Ascent stated it’ll proceed day-to-day operations and plans to conclude a strategic options course of within the instant future.
To help its continued operations, Ascent stated it acquired a dedication of interim financing for as much as 2 million Canadian dollars ($1.5 million) from Gulf Bridge. Gulf Bridge is a Dubai-based secured creditor of Ascent.
The creditor protection extends to Agrima Botanicals, Bloom Holdings, Bloom Meadows, Pinecone Products, Agrima Scientific and West Fork Holdings NV.
The proceedings don’t impression the operations of Ascent’s different subsidiaries in Oregon, Nevada and Denmark.
Ascent trades on the Canadian Securities Exchange underneath the ticker image ASNT.
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