Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Struggling Up The Charts

Last Thursday, Creative Edge Nutrition, Inc. (OTCMKTS:FITX) crashed horribly on the news that it is going to spin-off CEN Biotech into a separate publicly traded company.

The descent was certainly horrifying to watch, with dollar volume spikes signifying the desperation of panicked investors struggling to abandon ship, but luckily for FITX enthusiasts, it was short-lived. The crash took the ticker 32.62% in the red in one session, but FITX was back on its feet in the next, as the dust began to settle.

Although it was dramatic and intense, this turn of events was not exactly unexpected. One could see how dedicated FITX supporters would be horrified by the idea that the actual marijuana part of the company’s business could split form FITX and turn into a separate entity, in which said supporters have no stake. News of the resignation of CEO Bahige Chaaban AND the whole BOD certainly added to the panic and confusion, and the result can be seen on the charts.

However, as soon as some heads cooled, people realized that the panic was all for nothing – Mr. Chaaban is not really leaving the company, and when the spinoff does occur, FITX investors would get shares of the new company, as well as retaining ownership of FITX‘s stock. Seeing as how that’s the case, many investors decided to get back on track and stock up on “cheapies”. This can account for Friday’s 11.05% climb.

Still, investors would do well to remember that the possibility of an eventual spin-off isn’t really FITX‘s biggest issue at the moment. The zoning problems of the company’s Lakeshore facility are yet to be resolved, and if the end result of that conflict is not satisfactory, CEN Biotech will likely be in serious trouble, whether or not it is a separate entity by then.