Vancouver, British Columbia--(Newsfile Corp. - February 14, 2019) - Drew Malcolm ("Malcolm"), on behalf of a group of
concerned shareholders (the "Concerned Shareholders") controlling approximately 44.8% of the outstanding common shares of
Ascent Industries Corp. (CSE: ASNT) ("Ascent" or the "Corporation"), announced today that certain of the Concerned
Shareholders are prepared to offer a working capital loan and/or financing on a commercially reasonable basis to address apparent
liquidity problems at Ascent (the "Friendly Financing").
In its February 7, 2019 news release (available here), Ascent had
stated that should it "not be successful in its attempt to have the [Health Canada] Licences re‐instated so that it may commence
operations and generate revenue and cash flow in Canada, the Company's ability to continue as a going‐concern may be in doubt."
The Concerned Shareholders are concerned that a projected temporary deficit in working capital of Ascent may provide the
management a pretext to pursue to pursue potentially value-destructive transactions that would decimate shareholder value and erode
shareholder democracy.
A Friendly Financing from the Concerned Shareholders, who have a direct and vested interest in the success of Ascent, would
provide a sufficient capital injection for Ascent's immediate working capital needs until the appeal process with Health Canada
runs its course, and would provide the Corporation with adequate time to pursue an alternative strategy, if required. The Concerned
Shareholders are prepared to consider various forms of financings as part of the Friendly Financing in order to ensure that all
shareholders are treated equally.
The Concerned Shareholders control over 44% of the outstanding Ascent shares, and therefore there is a high likelihood of a
significant change in direction at Ascent. In such circumstances, the existing board of directors should not be undertaking any key
strategic or fundamental decisions without shareholder approval -- such decisions should be made by a board of directors that has
the support of the existing shareholders of Ascent.
Should the management reject the Friendly Financing and proceed with any form of value destroying transactions, the Concerned
Shareholders intend to commence legal proceedings immediately.
Contact Information for Malcolm and the Concerned Shareholders:
Drew Malcolm
778-819-6451
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/42835
