Ascent Industries Corp (CSE:ASNT) said it is fully committed to addressing concerns raised after its wholly owned subsidiary, Sweet Cannabis (SC), received notice from Clark County's department of business licence that its master marijuana licence may be suspended or not renewed.
“SC has been advised that it must appear before a hearing officer on February 28, 2019 to show cause why the license shall not be permanently suspended, revoked or non-renewed,” said Ascent Industries in a statement. "Ascent is fully committed to addressing the department's concerns, and will appear and provide appropriate information to the department at the February 28, 2019 hearing."
The department noted three specific violations: a cannabis consumption event in the H-1 zone resort corridor in Las Vegas, record keeping and inventory errors and parent company license suspension by Health Canada.
Sweet Cannabis has a right of appeal has a right of appeal of such a decision and may also file a petition for a judicial review conducted by the District Court.
The company said the consumption event appears to have taken place on November 15, 2018, under the former management team of Ascent, who resigned on November 21, 2018.
A company representative declined to provide further comment.
Separately, Ascent announced the resignation of Mark Brown from the board of directors effective immediately. The company did not provide any further details.
Shares of Ascent slipped C$0.03 to C$0.13 in Monday’s Canadian trading.
Contact Katie Lewis at [email protected]