Creative Edge Nutrition Inc. (OTCMKTS:FITX) Surges On News
Creative Edge Nutrition Inc. (OTCMKTS:FITX) got knocked down during the most recent market crash, but now it looks like it’s back up again. Yesterday it continued its ascent with another 10.04% climb.
The downfall of Growlife Inc. (OTCMKTS:PHOT) proved an especially dramatic and unpleasant turn of events for FITX, because of the extensive ties between both companies. FITX‘s most ambitious projects, the ones that gave investors hope that the company might make it big, hinged on close cooperation with PHOT.
FITX‘s reaction to it’s partner’s fall from grace was anything but amicable and supportive, but that was to be expected. After all, upon emergence from suspension, PHOT will have fallen all the way down to the Gray Market. It’s no wonder then, that FITX sought to distance itself from its former associate, abandoning any business opportunities PHOT might have provided, and looking for new funding.
Withdrawing from PHOT cushioned FITX‘s fall somewhat, but even the eventual news of funding failed to stabilize the ticker for long. In the end, it was the announcement that Push Point Management Group will provide strategic corporate consulting and capital markets support to CEN Biotech’s management team that set FITX on the road to recovery. This publication was immediately followed by the encouraging, if somewhat irrelevant announcement, that John A. Germinario had become Chairman of FITX‘s board of directors. Both news combined to fuel a frenzy of buying that pushed FITX all the way back up to $0.0866 over the course of the last three trading sessions.
However, despite the flashy boasts in FITX‘s new PR, investors should keep the following in mind. John A. Germinario may be a renowned financial expert, but he may not be able to do a whole lot for the company’s commercial success from the position he is in now. The announcement of FITX‘s latest strategic partnership was optimistic and boastful, but it begs an important question. Namely, how is FITX going to pay for the “market analysis, corporate and capital market counsel, corporate governance, risk management, introduction to capital, regulatory compliance, strategic branding and product rollout services” that PPMG will provide the company with?
Despite FITX‘s claim to the contrary, no filing has been made for receiving recent funding, and just two months ago the company declared that it had less than $20 thousand in working capital. That being the case, how can FITX possibly be able to afford PPMG’s services?
What is even more disturbing is the fact that FITX‘s meager financials and obscure partnerships aren’t by far the only red flags surrounding the company. FITX has about $3 million in current assets, yet boasts a Market Cap of $294 million – which is both alarming and perplexing at the same time. When all of this is taken into account, it becomes quite obvious that FITX‘s current flight is based on hype and hype alone – and experience teaches that hype can’t push a dubious company up forever.
