Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Trying To Attract Investors
Creative Edge Nutrition, Inc. (OTCMKTS:FITX) is among the companies who decided to venture into the medical marijuana industry with the boom period occurring in the sector. To its credit, FITX was successful in getting people interested right after making the announcement. Starting in the double zeros at the outset of the year, the company would pass the $0.01 mark with an astounding increase of 204% on January 7.
Since then, the ticker has been nowhere near its previous level, as the company has done it’s best to get people’s attention. FITX‘s efforts have been rewarded, as each item of news has had its effect on the market. By making frequent announcements, the company has managed to keep bouncing back whenever a slide down occurred. This is quite common for companies in this branch, but could it be enough to keep things going until the expected results are in?
On April 30, FITX announced that it has contacted Health Canada to request a pre-license inspection on its facility. The report stressed on how important it is for the company to get its license as soon as possible. That goes without saying. However, FITX did not mention how much time it usually takes for applications to be accredited. With over 600 applications waiting to be processed, the company’s readiness to venture into the medical marijuana industry is not what determines when it will be approved to do so.
Furthermore, stepping into the sector does not guarantee success. The Canadian market already has 38 thousand registered users with Health Canada who have been permitted to grow marijuana for medical purposes. FITX will have a lot of competition on its path to establishing itself in the medical marijuana branch.
Building a successful business venture also requires a strong financial backing. Looking through the 10-Q report for the period ended December 31, 2013, this was what the company had to work with at that time:
- Cash: $18,9 thousand
- Total Current Assets: $859,3 thousand
- Total Current Liabilities: $4,6 million
- Revenues: $303,7 thousand
- Net Loss: $1,4 million
The current financial landscape is by no means promising. With barely any cash at hand and accumulated high amounts of net loss and liabilities, the transition to a different venture would surely be challenging for the company to carry out successfully.
Before relying on news and prognoses issued by FITX itself, potential buyers should take their time to do their own due diligence when considering to invest in the company’s stock.
Cannabusiness Group, Inc. (OTCMKTS:CBGI), another medical marijuana penny stock, had been going downhill over the course of the past month, losing over 71%, and yesterday CBGI shareholders took another devastating hit when the SEC suspended the stock.
