Canadian cannabis company Ascent Industries has been granted creditor protection by the Supreme Court of British Columbia to address liquidity issues, caused “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 related to noncompliance with the Access to Cannabis for Medical Purposes Regulations and the Narcotic Control Regulations.
Since then, Agrima failed to demonstrate to federal authorities that a suspension in Canada is unfounded.
While under Companies’ Creditors Arrangement Act protection, Ascent said it will continue day-to-day operations and plans to conclude a strategic alternatives process in the immediate future.
To support its continued operations, Ascent said it received a commitment of interim financing for up to 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 do not impact the operations of Ascent’s other subsidiaries in Oregon, Nevada and Denmark.
Ascent trades on the Canadian Securities Exchange under the ticker symbol ASNT.