Hello,
As we inch closer to adult-use cannabis legalization in Canada, the team and I want to thank you for your continued support. Being at the forefront of this global shift in the conversation around cannabis has been an honour and a privilege, and, with your help, we will continue to establish ourselves as an international leader in cannabis.
In late September, it was brought to our attention that Agrima Botanicals did not meet all of its record keeping and other compliance requirements during a recent inspection. As a result, Health Canada has partially suspended Agrima Botanicals’ licenses. Ascent has taken steps to correct this non-compliance issue and anticipates having the licenses reinstated in the near future. We will continue to keep investors informed throughout the process.
Licensing issue aside, September was a great month for Ascent. We are pleased to announce that Ascent is now included in the CSE 25 Index. Earlier in September, our wholly owned subsidiary, Agrima Botanicals, signed supply agreements with the provinces of Ontario and British Columbia. Meanwhile, Agrima’s science division has developed a new methodology for producing water-soluble cannabinoids, enabling new and exciting avenues for product infusion in the beverage and edibles space. And on a final note, we are pleased with the continued development of AIC Health and are excited to get our cannabis-focused medical clinics operational within the coming months.
Remember, October 17th is a milestone, not an end goal. With legalization on the horizon, we expect bigger and better things in the near future and are grateful for you to be joining us on this journey.
Thanks again for all your support,
PHILIP CAMPBELL
CO-FOUNDER, DIRECTOR & CEO
Product Updates
Last month, Sweet Cannabis PDX launched a new line of Grace Notes Edibles. Available in both THC and CBD formulations, Grace Notes Chocolate Bars combine quality ingredients with top-tier cannabis and are available in three unique flavours. The Grace Notes line is rounded out with single serve Bites and Taffy Notes, both of which are also available through Sweet Cannabis Nevada.
On the medicinal front, the Nu product line continues to perform well, with the CBD tinctures and gel caps being particularly strong sellers.
Looking ahead, we will be rolling out some big improvements to Toko , our line of sleek and discreet cannabis vape products. The high-quality cannabis oil Toko is known for isn’t changing - we are simply updating our cartridges. In the coming months, we will be replacing our current steel and wick cartridge format with ceramic cell coils. We are always listening to feedback from our clientele, and are making this change to ensure that we continue to give consumers the best possible cannabis vaping experience.
Company News
The company accomplished several key objectives this month, including the recent formation of AIC Health and our addition to the CSE25 Index. With these developments, we are well positioned moving forward and one step closer towards changing the landscape of medical clinics across Canada.
On September 7th, we proudly announced a signed supply agreement between wholly-owned Ascent subsidiary Agrima Botanicals and the Ontario Cannabis Retail Corporation, as well as a supply agreement with the British Columbia Liquor Distribution Branch. We are currently working towards similar agreements with other provincial liquor boards.
Earlier in September, the Agrima research team developed a proprietary methodology for producing discrete, water-soluble cannabinoids in both powder and liquid form. This new technique allows for a much faster onset time, as well as greater flexibility when creating unique formulations for the edibles and beverage markets. Water-soluble cannabinoids emulsify evenly, making it easier to standardized product mixtures, enabling us to provide a consistent consumer experience.
The timing of this new development couldn't have been better, as Agrima Labs nears its final completion phase. We are currently waiting on a level 10 vault installation and some equipment delivery, allowing the lab to become fully operational in the coming months. Once completed, our science teams will have 20,000 square feet of state of the art lab space designated for ongoing research and development, ethanol and CO2 extractions, as well as product refining, testing and packaging
To learn more about our current facilities click here.
Employee Profile
This month, we’d like to highlight the hiring of John Sweeney as Vice President of US Operations.
Before joining Ascent, John had spent five years working in the cannabis production space, initially as a consultant, then as the VP of Operations for Privateer Holdings, parent company of Tilray - the first licensed medical cannabis producer in North America with cGMP certification. Prior to this, John spent over 15 years in senior roles within large-scale commercial manufacturing operations at leading edge biopharmaceutical companies including: Pfizer, Wyeth, and Sanofi-Aventis.
Overseeing operations at both Sweet Cannabis manufacturing facilities in Portland, Oregon and Las Vegas, Nevada; John’s stellar track record working with large-scale bio-pharmaceutical production makes him perfectly suited to help Ascent meet the requisite operational, regulatory and technical challenges of applying cGMP manufacturing principles to large-scale cannabis production.
Welcome to the team, John!
Events
Last month, Ascent was proud to be a Title Sponsor of the 4th annual Cannabis Hemp Conference & Expo in Vancouver. Canada’s largest and most comprehensive hemp conference featured a number of great presentations and keynote speakers, including Ascent co-founder and COO Reid Parr. Dr. Perry Kendall, a retired public health official and current Ascent board member, also took the podium, as did Dr. Zamir Punja, a SFU research scientist with whom Ascent enjoys a working partnership.
Elsewhere, Ascent was an exhibitor at the Cambridge House International Extraordinary Future event and co-founder and CEO, Philip Campbell spoke at the Okanagan Cannabis Business Symposium.
Looking ahead to October, Philip Campbell will be speaking at the Canadian Cannabis Capital Markets Conference in Frankfurt, Germany on the 21st and Agrima Botanicals will be at the Montreal Cannabis Expo on the 26th and 27th.
This is the premier cannabis event in Quebec, as well as the first post-legalization industry trade show. Locally in Richmond, British Columbia, Philip will also be presenting at the 19th Annual GCFF Vancouver Conference. Canada’s largest and fastest growing Chinese investor communities with investment opportunities in the technology, life science, mining and energy sectors.
ASNT:CNX Performance
The following graphs illustrate Ascent Industries and the Canadian Marijuana Index performance between September 5th, 2018 and October 5th, 2018. The Canadian Marijuana Index experienced a 1.5% decline while Ascent Industries was up 49% during the same period of time.
Here is a monthly summary of our stock:
Click here to view more.
Canadian Marijuana Index Performance
Here is a monthly summary of the Canadian Marijuana Index:
The Canadian Marijuana Index tracks the leading cannabis stocks operating in Canada. Constituents must have a business strategy focused on the marijuana or hemp industry, and are required to meet minimum trading criteria. The Index is equal-weighted and rebalanced quarterly. Click here to learn more.
As we countdown the days to October 17th, we want to thank you again for your continued support. We look forward to touching base with you again post-legalization.
Sincerely,
The Ascent Industries Team
