Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Dragging Its Feet Up

While other pot stocks were riding high on gubernatorial promises of legalization, Creative Edge Nutrition, Inc. (OTCMKTS:FITX) managed to gain just 3.06% yesterday, pushed up slowly by the company’s claims to progress.

FITX was left out of the sector-wide surge that jerked all other marijuana tickers violently up last week, but that’s understandable – after all, the company’s base of operations is in Lakeshore,Canada. This being the case, it’s logical that FITX share prices wouldn’t be affected as dramatically by US developments as those of US based companies, such as Hemp Inc (OTCMKTS:HEMP) and Cannabis Science Inc. (OTCMKTS:CBIS).

What usually affects FITX‘s market value the most are news related to the company’s progress in acquiring all the licenses necessary to launch production in its growing facility. Case in point – the company’s last PR has managed to push the ticker about 9% thus far, in spite of containing statements that can be called dubious and misleading at best.

So exactly what part of the press release is dubious? Well, the company threw vague optimism at investors once more, but that’s hardly new or surprising. However, once you start reading the report that FITX was so kind to provide, it turns out that “The two minor deficiencies sited in the report” that the company claims to have “remedied very quickly” are not as minor as FITX would have investors believe.

Page 11 of the report clearly states that Health Canada didn’t actually inspect a fully functioning facility. Rather, the inspectors took a look at the facility’s security system and examined a “scaled down prototype of the growing pod”. It also appears that the pod’s construction, as presented, was unsatisfactory more than a few ways, which means that a re-inspection will most likely be necessary. With all due respect, how can that state of developments be described a “minor deficiency”? 

Cases such as this one are precisely why investors are advised to do proper due diligence and take all boastful PR with a pinch of salt.