I hope you are well and had a good long weekend.
Since it has been almost one-month since Ascent announced the establishment of a new Board of Directors, I wanted to provide you with a progress report on recent events.
In addition to sharing relevant information, I hope this message will establish a new foundation for transparent communications with you.
As a member of the Ascent Board and your new CEO, I want to take this opportunity to thank you for your loyalty and patience over the past year. While the company has suffered significant set-backs under the previous leadership, our new team is working tirelessly. Together, we will all reach light at the end of the tunnel.
Here is a summary of activities over the past four weeks:
New Board and Officers: Effective April 26, 2019, a group of concerned shareholders controlling approximately 53% of Ascent’s outstanding shares reached an agreement with the prior directors to resign as officers and employees. Myself, Mark Lotz and David Hurford were appointed to the Board until a special meeting of shareholders can hold an election. We are in the process of updating the company’s web-site to include this information.
Stakeholder Outreach and Communications: Since being appointed April 26, 2019, Mark and I have visited the company’s facilities and offices in British Columbia, California, Oregon and Nevada to meet with employees, contractors, vendors and community partners. In addition to gaining a better understanding of Ascent’s current state and potential opportunities, this engagement will help us shape a strategic approach that can lead to enhanced shareholder value and a sustainable business model.
Compliance: Efforts are underway to address outstanding regulatory compliance issues in Canada and Nevada. These are a top priority as follows:
• Health Canada: Our legal and government relations team have been in communication with officials regarding the suspension and proposed revocation of the company’s cannabis production and dealer licences. We have requested a meeting to reach a mutually agreeable solution to the administration of the licenses and achieve closure.
• Nevada: Sweet Cannabis, a wholly-owned Ascent subsidiary, has a show cause hearing with Nevada’s Clark County Department of Business License next week in respect to the company’s license status. I will be there. During our recent visit, we met directly with officials and our legal representatives to ensure they are aware that our new leadership is fully committed to addressing and resolving the Department’s concerns.
Special Meeting Update: The previously-announced special meeting of shareholders, which was called subsequent to a requisition by the concerned shareholders, is scheduled to proceed June 25 in Vancouver at 10am. Location details will be distributed shortly.
While we know there are difficult days ahead as we resolve dozens of outstanding issues and claims, we look forward to rebuilding the company over the coming year and re-establishing a global leadership brand in this rapidly evolving and expanding sector.
To achieve this shared goal, my colleagues and I will adopt an inclusive, transparent and consultative approach that promotes continuous quality improvement at all levels of the organization.
We look forward to working with you in the coming year. Please don’t hesitate to contact me anytime at [email protected] if you have any questions, feedback and suggestions.
Ascent Industries Corp.
Interim CEO, President & Director