Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Takes Another Step Down
Creative Edge Nutrition, Inc. (OTCMKTS:FITX) stock was relatively stable in early and mid June, but has become shaky in the last few trading sessions, as investors are starting to lose patience with the company. Yesterday FITX lost 5.80% of its market value – seemingly without a cause.
FITX has been one of the most prominent and well-liked marijuana companies on the OTC ever since the rush began. Much like Terra Tech Corp. (OTCMKTS:TRTC), its goal is to become a major marijuana provider on a global scale. Although these two companies are obviously very different, FITX is currently suffering the same symptoms TRTC has had for some time. This is largely due to the fact that FITX has adopted a strategy that is similar to that of TRTC, and as with TRTC, this tactic seems to be failing lately, in light of both company’s failure to deliver actual results to supplement the PR they keep pumping out.
Truth be told, pot companies don’t really have much of a choice in in this particular set of circumstances. Looking back, investors will notice that FITX has made steps towards its ultimate goal. Granted, the steps that were made were few and relatively small, but they were indeed made, which means that the company is making progress, which is certainly admirable. What is not admirable is the way FITX disseminates statements that are either easy to misinterpret or downright misleading and/or false at every opportunity.
The press release FITX issued on June 4 is a perfect example of that. While it was as vague, uninformative and needlessly optimistic as can be expected from a piece of MJ PR, it declared that FITX will “patiently await Health Canada inspectors”. This statement was universally interpreted by FITX enthusiasts as a declaration that the company is locked and loaded, ready to be inspected at any time and immediately receive the much anticipated growing license.
Very few investors saw that the emphasis of this statement can be put on the word “patient”. If that was indeed the case, the statement could actually mean that traders may be in for a long wait before the company is even inspected, let alone given a license to grow weed. Three weeks later there is still no news of any developments on that front, and at this point it looks like that may well be what FITX meant.
June 6 & June 9 both saw more esteemed names added to FITX‘s Board of directors, which is certainly good news, but nothing to write home about. After all, a member of the board could only do so much for a company that doesn’t even have a license to start its main operations yet.
The June 13 announcement FITX made was positively remarkable in its absolute absurdity. In a fit of boastful optimism, Bill Chaaban declared that “In an effort to increase transparency and up-list to a hirer exchange, we believe it is in the best interest of the company and its shareholders to change transfer agents“. This makes FITX sound like it is just a step away from uplisting, which the company clearly is not.
Just one glance at the Initial Listing guide for the NASDAQ OMX makes it quite obvious that FITX isn’t going there any time soon. It doesn’t matter how “pleased to announce the retention of Deloitte as our audit firm” the company is – there are strict financial and liquidity requirements that FITX simply has no way of covering, even if it employs the creative accounting tricks it has been fond of lately. Commercial success seems to be a requirement for higher exchanges, and seeing as how FITX is still “patiently waiting” for a license to even start growing, an uplisting is unlikely to happen for a long time.
This is precisely why FITX is currently on the decline. So far it has delivered little more than rampant optimism, blatant exaggerations, misleading PR and no significant results – not even a clear sign that such are forthcoming.
