Creative Edge Nutrition Inc. (OTCMKTS:FITX) Breaks Its Green Streak

Yesterday’s drop neatly wiped out the gain that Creative Edge Nutrition Inc. (OTCMKTS:FITX) had made in the previous session.

FITX‘s fall was hardly surprising, given the fact that Wednesday’s jump was achieved on news that were quickly proven to be false. To elaborate – an image depicting the list of Health Canada’s licensed marijuana producers, with FITX‘s name on it, hit the web and caused much turmoil, allowing the company to continue its green streak. Hype and hope carried the ticker through another green day, but once it became obvious that the list was fake and FITX hasn’t actually been given the license it desperately needs, the company’s crash became inevitable.

   As it is now, it is difficult to say why the whole ordeal with the fake list even took place. Speculation has run rampant on the web, with theories ranging from “stupid joke with no punchline” to “just another marijuana publicity stunt”. Although the former is highly likely, the latter also seems plausible, given FITX‘s tendency to promote itself through the social media.

On that note, anyone that pays attention to the company’s Facebook page will note that yesterday the company linked yet another article that delivered optimism and assurances from Lakeshore Mayor Tom Bain, but no news of actual results on the build-out and licensing process. This was done despite the company’s declaration, that it will no longer rely on social media to keep its investors informed.   

But when you think about it, what other choice does FITX have? The SEC has made it clear that pump campaigns and exaggerated or false press releases are now valid reasons for suspending companies. The fact remains that FITX doesn’t even have a license to grow marijuana yet, which means that the company does not have any real progress to report. At the same time, if FITX fails to sustain the hype, the stock will most likely go down again.

Once all this is taken into consideration, it becomes obvious why the company has not stopped promoting its stock through the social media, and why it is highly unlikely to stop posting hype-inducing comments any time soon.

Another prominent marijuana company that fell yesterday despite the media attention thrown its way was Terra Tech Corp. (OTCMKTS:TRTC), who stumbled 7.84% in that session.