Canadian cannabis firm Ascent Industries Corp. (OTCMKTS:PGTMF) said it received approval to sell its Canadian business to BZAM Management.
Ascent Unloading Canadian Assets
The approval and vesting order by the Supreme Court of British Columbia allows Ascent to sell all the assets comprising the Canadian business of its subsidiaries, Agrima Botanicals, Bloom Holdings, Bloom Meadows, Pinecone Products and Agrima Scientific to BZAM Management under an asset purchase agreement.
The vesting order was issued in connection with the proceedings under the Companies’ Creditors Arrangement Act (Canada) for the agreement with BZAM.
The deal is valued at around C$41.5 million, comprising of C$29 million of cash and the assumption of liabilities of about C$12.5 million.
BZAM has agreed to assume certain liabilities of, including the company’s obligations to purchase a greenhouse located in Pitt Meadows, British Columbia.
The deal is expected to close on or before April 3.
In Canada, Ascent operates through its wholly-owned subsidiary Agrima. It is a licensed producer (currently suspended) under the Cannabis Act and Regulations, with licenses to cultivate cannabis and produce cannabis extracts.
In addition, the company is a licensed dealer (currently suspended) under the Cannabis Act and Cannabis Regulations, with the ability to produce, package, sell, send, transport and distribute medically focused cannabis products in Canada to other licensed entities and internationally in jurisdictions where medical cannabis is legal.
Ascent Outside Canada
Ascent said that the deal does not affect its cannabis cultivation and distribution outside of Canada. Through its subsidiaries, the company will continue to own the assets related to its cannabis cultivation, production, distribution, research and product development business in Oregon, Nevada and Denmark.
In the United States, the company holds licenses in Oregon for processing and for distribution of cannabis to any licensed entity in the state. In Nevada, it holds licenses for cultivation and for production, processing and wholesale distribution of cannabis.
In Europe, Agrima ApS, a Danish company and subsidiary of Ascent, has submitted license applications for a wholesaler dealers license and controlled drug license in Denmark, and applications for the approval of eight products to the Danish Medical Cannabis Pilot Program.