According to a press release put out by the company last week:
“Health Canada has advised the responses were not satisfactory to lift the suspension and has issued a letter to Ascent that it intends to revoke Agrima’s licences. In turn, the Company intends to exercise its right to be heard under the Cannabis Act and Cannabis Regulations in order to maintain its licences. Should the Company not be successful in this hearing process, the licences could be revoked.”
As a result of this, management was disbanded that day, the Board of Directors has accepting the resignations of Philip Campbell, Reid Parr and James Poelzer.
December 17th, 2018
News came out today from Ascent saying that Health Canada has given them an extension to December 17th, 2018 to plead their case. If the company is not able to make a solid case for their behaviour, this will be the first cannabis license Health Canada has revoked.
The stock has been bleeding as a result of this, but may have hit a bottom last week as the stock began to move upward ever so slightly. If for some reason Ascent is able to defend itself against revoking of their license this stock could be the greatest sale of the year. The company still has US operations in Nevada, Washington State and Oregon.
At a $0.21 share price ASNT has a market cap of only $66.1 million with a price/book of only 2.7. The company does suffer from moderate-heavy dilution with 314,574,566 shares outstanding, meaning it may take a lot for this stock to move.
If Agrima is able to retain its license it’s a pretty safe bet that this thing could fly, however, the odds of Health Canada allowing for Agrima to retain its full operations is unknown as this is the first event of its kind in Canada with cannabis just becoming legal last month.
We will update this story as it unfolds.