Vancouver-based Ascent Industries stated it’s cooperating with an investigation by the British Columbia anti-gang police unit into “certain activities at Ascent,” however the company denies such a probe exists “at this time.”
A spokesperson for the Combined Forces Special Enforcement Unit of British Columbia (CFSEU) stated Ascent has been “speaking” with the company, however no investigation has been launched.
“Ascent contacted CFSEU and supplied us with some information. That information has been documented on a file,” a Royal Canadian Mounted Police spokesperson informed Marijuana Business Daily.
“However, at this point, the CFSEU has not engaged in an official investigation on the activities of Ascent. All that’s happened at this point is we’ve gathered some information that was supplied by them.”
Ascent issued a information launch on April 11 disclosing that the corporate “has been cooperating with an investigation being undertaken by the Combined Forces Special Enforcement Unit of British Columbia (CFSEU) in respect of certain activities at Ascent.”
In the identical launch, Ascent stated it has engaged a forensic accountant to evaluate “suspicious payments” made between June 2017 and November 2018.
The firm provided no different particulars concerning the alleged suspicious funds.
Interim CEO Blair Jordan stated the discrepancy might contain who or what’s being investigated.
“I’m not sure if Ascent the company is being investigated. Perhaps the people formerly connected with Ascent or activities at Ascent are the focus for the investigation,” he informed MJBizDaily.
“I really don’t have any visibility into what they’re investigating.”
The file quantity offered by the corporate isn’t related to any official investigation, in response to the police spokesperson.
After the forensic evaluate is full, Ascent stated, it plans to evaluation the outcomes with an unbiased auditor.
“In the event the company is required to restate its financial statements as a result of the review, Ascent advises that it may not be in a position to file its audited annual financial statements for the fiscal year ended Dec. 31, 2018,” Ascent stated within the information launch.
During the interval coated in Ascent’s forensic assessment, it was the mother or father firm of Agrima Botanicals, then a licensed producer of hashish.
Health Canada issued Agrima a discover of intent to revoke its hashish licenses for failing to exhibit that the suspension of the corporate’s permits over “unauthorized activities with cannabis” was unfounded.
Ascent just lately accomplished the sale of all belongings comprising its Canadian enterprise – together with Agrima – to Bzam Management for 41.5 million Canadian dollars ($30 million).
Ascent’s operations presently embrace amenities in Nevada – the place it has a pending listening to in one other investigation – and Oregon.
Ascent European subsidiary, Agrima ApS, has submitted purposes for a wholesale sellers license and managed drug license in Denmark.
Ascent’s inventory, which trades on the Canadian Securities Exchange as ASNT, has fallen virtually 90% since September.
Matt Lamers may be reached at [email protected]