Creative Edge Nutrition Inc (OTCMKTS:FITX) Screeches to a Stop
After a letter to shareholders and an announcement concerning its spinoff plans, Creative Edge Nutrition Inc (OTCMKTS:FITX) shot up on the charts in an unusual volume session on Thursday. On the next day that excited rush halted with a cough and a sputter and FITX closed red.
The reason the stock woke up from its months-long hybernation and moved up was a couple of press releases that were put up last week. One was a letter to shareholders from their favorite 2014 FITX public face and former company CEO – Bahige (Bill) Chaaban, the other was an announcement of how and when CEN Biotech will become a separate publicly traded entity and how existing FITX shareholders will receive shares in the new entity.
Obviously there were a sufficient number of people who either still believe in CEN Biotech’s dream of growing and selling medical marijuana in Canada, or there were enough new traders around to gobble up FITX shares and send the price up last week. Those who have been around longer will remember enough things that may give them pause when FITX is putting up optimistic PR.
Those people will remember the repeated assurances over the long months of waiting in 2014, when the company kept telling shareholders everything was on track and the security inspection of the Lakeshore facility was a success and the Health Canada license was almost in the bag. Then the big come down happened and Health Canada formally denied the company a license to grow marijuana. The effect of this denial is visible on the chart.
The Canadian media picked the story and literally tore FITX to bits, with a series of devastating articles in The Globe and Mail. Those who remember those articles will also remember the issues they raised, including a fictional person called Isak Weber who vigorously defended FITX in an interview and accused the media of ‘grossly misstating’ facts. Later Chaaban compared the fictional Mr. Weber to Ronald McDonald. This little stunt caused FITX‘s PR firm, Pathway Group, to sever all ties with its client in order to preserve its own integrity.
People may also remember that Mr. Chaaban was found to sign official public documents using different signatures. His explanation was that the signature used depended on his mood and that this was also a way to prevent forgery. Readers should decide for themselves which of those two sounds more hilarious.
It bears repeating that the same Mr. Chaaban will be the new CEO and president of newly spun off CEN Biotech Inc, once the share distribution takes place on November 30.
