News keeps getting worse for Ascent Industries (CSE: ASNT)

The news keeps getting worse and worse for Ascent Industries Corp. (CSE: ASNT). This week it was announced that Sweet Cannabis, ASNT’s wholly-owned subsidiary operating in Las Vegas, Nevada received notice from Clark County’s Department of Business License of the potential suspension, revocation or non-renewal of SC’s Master Marijuana License. The Department advised that through an investigation three violations were identified:

1. An SC hosted cannabis consumption event in the H-1 Zone Resort Corridor in Las Vegas

2. Record keeping and inventory errors

3. Parent company license suspension by Health Canada.

There will be a hearing on February 28, 2019 to show cause why the License shall not be permanently suspended, revoked or non-renewed.

If that wasn’t enough, Director Mark Brown resigned.

After a very profitable trading experience in Ascent for The Cannabis Report Model Portfolio, I foresaw problems with their licensing and said here I expected their Canadian licenses would be revoked. That still seems very much in the cards. I did not think the U.S. assets would be impacted but now that seems to be changing. I don’t see much reason to own ASNT at this point given the latest news.