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Ascent granted creditor protection

Ascent Industries Corp. says an order granting the company creditor protection has been issued by the Supreme Court of British Columbia. The B.C.-based cannabis company says it filed for CCAA to address near-term liquidity issues which were in “large part” caused by Health Canada’s suspension of its licences under its subsidiary Agrima Botanicals Corp. Ascent has said that Health Canada asserts that “unauthorized activities” with cannabis took place during a period of time that it was privately held, and has suspended its producer and dealer’s licence under the former Access to Cannabis for Medical Purposes Regulations regime.

Last month, Ascent said that Health Canada indicated that the company did not demonstrate that the suspension was not warranted and the government health agency still intends to revoke their licences, but it had until Feb. 20 to make additional submissions. Agrima is still listed as suspended on Health Canada’s website of licenced producers. Ascent said today that the suspension was negatively impacting its ability to complete its strategic review to address short-term liquidity issues. The company added that while under CCAA protection, Ascent will continue with its day to day operations and the proceedings do not include or impact the operations and activities of its other subsidiaries, including in Oregon, Nevada and Denmark.

–Canadian Press

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Related: Ascent agrees to activist meeting, but issues warning in proxy battle

Zenabis receives licence for N.S. facility; raises $15M in bought deal

Zenabis Global Inc. said yesterday that it has been approved by Health Canada to cultivate and grow cannabis at its 255,000 square foot facility in Stellarton, N.S. This represents the third Zenabis facility in Canada licensed to grow cannabis, adding design capacity of 18,500 kilograms of dried cannabis a year. Zenabis says its Stellarton facility features a production environment that supports both growing and finished product operations, as well as new product development and areas for commercial-scale oil extractions. Vancouver-based Zenabis also said yesterday that it has raised $15-million through a bought deal with Eight Capital under which Eight Capital has agreed to purchase 15,000 unsecured convertible debentures.

Harvest One to acquire Delivra

Harvest One Cannabis said Monday it will acquire Delivra Corp. for $19-million in a stock deal that it says will strengthen its medical and wellness division. Under the terms of the arrangement, shareholders of Delivra will receive 0.595 common shares of Harvest One for each Delivra Share. Harvest One says the Delivra transaction will immediately add to the revenue of Harvest One with its existing distribution into Shoppers Drug Mart, Wal-Mmart, Loblaw, Rexall, Pharmasave, London Drugs, and other major retailers in conjunction with Harvest One’s existing distribution of Dream Water in 30,000 stores across North America.

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