Ascent Industries says voting trustee shareholder acquires more than 116M shares

Ascent Industries Corp (CSE:ASNT) (OTCMKTS:PGTMF) said Monday that shareholder Drew Malcolm acquired control of 116 million shares, and now controls more than 140 million shares of the company, or  44.8% of the capital.

Previously, Malcolm beneficially owned or controlled nearly 7.7% of the issued and outstanding shares. He has now been appointed as a voting trustee.

Shares of the cannabis-focused group added nearly 8% in Toronto to $0.205.

READ: Ascent Industries announces debt re-financing and working-capital loan

On Friday, February 1, concerned shareholders Terry Booth, Donald Campbell, Hope Rudl, Mark Parr, James Fitzpatrick, Reid Parr, Philip Campbell, James Poelzer, Quintet Ventures Inc and Lola Ventures Inc each entered into separate voting trust agreements with Malcolm, allowing him to acquire their shares.

“Mr. Malcolm acquired voting control over the shares to more effectively exercise the rights of the concerned shareholders with a view of obtaining more fulsome disclosure regarding the issuer’s future business plans,” British Columbia-based Ascent said in a statement Monday.

In December last year, Ascent announced it had hired financial firm Clarus Securities to explore a range of strategic alternatives to strengthen the company’s balance sheet and maximize value.

Health Canada suspended producer and dealer licenses issued to the group’s subsidiary Agrima Botanicals.

Refinancing of debt facilities

Earlier this month, the group re-financed two senior secured debt facilities and obtained working capital through a private international lender.

The company said it has replaced the C$1.7 million first mortgage attached to its Maple Ridge property in Canada and the C$4 million convertible note in respect of the company’s Las Vegas, Nevada property, with a single loan secured against both properties that includes working capital of around C$1 million.

The re-financing consolidates a mortgage and convertible note into one secured loan for Ascent. The company said the working capital portion totals C$7 million, with an interest rate of 10% per annum, due on July 15, 2019, or a later date as agreed.

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Story by ProactiveInvestors