Ascent Industries seals approval to sell Canadian cannabis business

Ascent Industries Corp (CSE:ASNT) (OTCMKTS:PGTMF) announced Tuesday that it has received approval to sell its Canadian business, in a transaction valued at C$41.5 million.

Together with subsidiaries Agrima Botanicals Corp, Bloom Holdings Ltd, Bloom Meadows Corp, Pinecone Products Ltd, and Agrima Scientific Corp, Ascent has been granted an approval and vesting order by the Supreme Court of British Columbia. This means Ascent can sell “substantially all of the assets comprising the Canadian business,” to BZAM Management Ltd, an affiliate of Gulf Bridge Ltd. 

BZAM has agreed to assume certain liabilities, including an obligation to purchase a greenhouse, located in Pitt Meadows, BC. 

READ: Ascent Industries inks agreement to sell Canadian cannabis business

The company said the transaction is valued at approximately $41.5 million, comprising $29 million of cash, and the assumption of liabilities, which is valued at approximately C$12.5 million. The company said the transaction is expected to close on or before April 3, 2019. 

Ascent, through its subsidiaries, will continue to own the assets related to Ascent’s cannabis cultivation, production, distribution, research and product development business outside of Canada in Oregon, Nevada and Denmark.

Shares of Ascent were halted on March 18.

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors