The Aristocrat Group Corp (ASCC)

[236T568]

Bye Bye ASCC

from the 10Q filed with the SEC yesterday:


http://ih.advfn.com/p.php?pid=nmona&article=70793055&symbol=ASCC

In January 2016, the Company received a notice from the Texas Alcoholic Beverage Commission (the “TABC”) informing it that an administrative case had been filed against the Company’s permit to distribute distilled spirits in the State of Texas. The TABC asserted that the Company’s private labeling contract to produce RWB Vodka resulted in unauthorized manufacturing activities by the Company. The TABC has issued a cease and desist order which prohibits the manufacturer from shipping additional RWB Vodka to the Company under its existing wholesalers permit (“W Permit”), and the Company is barred from importing any distilled spirits into Texas from its private label manufacturer. Under the current settlement discussion, the Company is not prohibited from selling the RWB Vodka which is already held in inventory and expects to be able to continue to sell its existing inventory for 30 days after a settlement is reached. The Company is currently in settlement discussions with the TABC to resolve this matter. In order to comply with TABC rules, the Company plans to surrender their existing W Permit and applying for a non-resident seller’s permit (“S Permit”) from the TABC. Under the S Permit, the Company would be allowed to distribute its products through a third-party wholesaler instead of selling directly to retailers as it does now. The Company expects that its existing inventory will be sufficient to fulfill all orders until it is able to again purchase inventory under a new permit.