Uncertain future for Ascent Industries (CSE: ASNT)

The hole that Ascent Industries (CSE: ASNT) finds itself in gets deeper and deeper. Recently the company reported that it has been cooperating with the Combined Forces Special Enforcement Unit of British Columbia in an Investigation (CFSEU-BC) into “suspicious activities.” They report the CFSEU-BC mandate is to target, investigate, prosecute, disrupt, and dismantle the organized crime groups and individuals that pose the highest risk to public safety due to their involvement in gang violence. Ascent reports it has also notified the British Columbia Securities Commission of the investigation.

They went on to say, “Ascent advises that it has engaged a forensic accountant to review certain suspicious payments made between June 2017 and November 2018, which the current management has been investigating. Upon completion of the forensic review, Ascent plans to review the matter with its independent auditor. In the event the Company is required to restate its financial statements as a result of the review, Ascent advises that it may not be in a position to file its audited annual financial statements for the fiscal year ended December 31, 2018 and the related management’s discussion and analysis…by the filing deadline of April 30, 2019.”

Ascent shares have been halted on the Canadian Stock Exchange for several weeks and it remains uncertain when trading will resume.