Ascent Industries inks agreement to sell Canadian cannabis business

Ascent Industries Corp (CSE:ASNT) (OTCMKTS:PGTMF) announced Monday that it had signed a deal to sell its Canadian business. 

Together with subsidiaries Agrima Botanicals Corp, Bloom Holdings Ltd, Bloom Meadows Corp, Pinecone Products Ltd, and Agrima Scientific Corp, Ascent entered into an asset purchase agreement with BZAM Management Ltd, an affiliate of Gulf Bridge Ltd.

Ascent has agreed to sell “substantially all of the assets comprising the Canadian business” for cash, according to a statement released by the company. 

Shares of Ascent were halted Monday morning. 

READ: Ascent Industries says cannabis company pursuing strategic alternatives

BZAM Management has also agreed to assume Ascent’s obligations to purchase a greenhouse, located in Pitt Meadows, British Columbia.

According to a job advert posted online, BZAM Management, headquartered in Vancouver, is aiming to “build a premium cannabis brand alongside a growing portfolio of subsidiary LPs,” as an integrated cannabis cultivation, processing and marketing business. 

Outside of Canada, Ascent will continue to own its cannabis cultivation, distribution, research and product development business in Oregon, Nevada and Denmark. 

Deal details

According to the company, the transaction is subject to a number of conditions and is subject to Ascent receiving an approval and vesting Order of the Supreme Court of British Columbia issued in connection with the proceedings under the Companies’ Creditors Arrangement Act. 

The company said it intends to apply to the court to receive the approval and vesting order at a hearing, which will take place on or before March 22, 2019. 

The transaction is expected to close before April 15, 2019.

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors