Creative Edge Nutrition Inc (OTCMKTS:FITX) has been one of the most traded and talked about bb stocks over the past year; even now, months after “I-Billieve-Bill Chaaban” and the entire BOD resigned with CEN Biotech’s bid to get licensed by Health Canada hanging by a thread the stock still trades 10’s of millions of shares a day and continues to be a hot topic amongst investors.
FITX gained major attention last year when they announced their intention to build out a ”58,000 sq. ft. building in Lakeshore, Ontario, Canada to grow pot and make the property the largest, most advanced medical marijuana grow facility on earth.”
The stock went wild transforming to one of the top most traded stocks on the entire bb. At its height FITX was like a cult with shareholders selling t-shirts that said “FITX-Long” or “I-Billieve” (as in president and CEO of FITX, Bahige “Bill” Chaaban). FITX still boasts 12,500 followers on Facebook, 1,500 followers on Investors hub and 4,700 followers on Seeking Alpha the last time I checked.
Ultimately though the plan fell apart after Health Canada informed CEN Biotech in a letter that the government intended to refuse its application for a license; the move came after a series of articles in The Globe and Mail questioned FITX conduct, including allegations of misrepresentation and false claims by the CEO to investors and regulators. The matter is now in Federal Court for Judicial Review.
New CEO James Robinson has tried to put a new face to the Company in a number of shareholder updates recently however the past cannot be erased and will significantly affect the future of FITX and most importantly its shareholders.
According to the 10Q from February 19, 2015 FITX has less than $100,000 in the treasury and close to $20 million in accounts and notes payable. As a recent SA article stated ”In a nutshell, former Creative Edge management left investors with a -$20 million bill from CEN Biotech and nothing to show for it, except a T-Shirt.”
Mr. Robinson might have said that ”I also want to state the company has no plans to do a reverse in 2015.” but this $20 million bill is going to have to be paid somehow and it’s certainly not going to come from FITX declining revenues. There is a significant threat of massive dilution here. Bill Chaaban’s statement that ”We are exploring the share buy back options.” seems laughable now.
Creative Edge Nutrition Inc (OTCMKTS:FITX) is the umbrella holding company based in Madison Heights, Michigan. The Company is headed up by new CEO James Robinson who have a vision to launch an industry leading energy drink line and to accelerate revenue, achieve profitability and shareholders’ value. Under the FITX umbrella, there are 2 primary business subsidiaries:
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CEN-BIOTECH as previously described ”This subsidiary is involved in production and distribution of medical marijuana, and is based in Lakeshore, Ontario, just outside Windsor in Canada. FITX is one of the very few true “MMJ” stocks which will actually produce the marijuana, as opposed to most other that are involved with other derivative aspects of the marijuana such as CBD extracts, CBD research, edibles, smoking or growing devices, etc.”
CENERGY NUTRITION as previously described ”This subsidiary is our personalized sports supplement nutritional line. Cenergy products are sold on the biggest online supplement stores including Amazon, Bodybuilding.com, GNC, Europa Sports, Prosource, NutritionExpress, multiple others, and getting great reviews with rapid movement up the bodybuilding.com product popularity charts.
On February 10 CEO James Robinson issued a letter to shareholders in which he stated his intent to refocus the Company on its core business of selling energy drink products. Specifically he plans to focus on FITX Giddy Up line of energy drinks. The Company already has
According to a later release Giddy Up will be available in both regular and sugar free in six flavors: Orange-Pineapple, Strawberry-Kiwi, Apple-Berry, Cherry-Pear, Peach-Mango and Cran-Blueberry. “The product design is eye catching, unique and when combined with these great ground breaking flavors, will attract customers quickly to accelerate revenue growth for the company,” James Robinson, CEO.
Giddy Up is targeting the New Age Energy, Food and Beverage Products market segment, which is a multi-billion dollar market and still growing rapidly. Initial focus groups taste testing of Giddy Up energy Drinks, including Giddy Up’s Energy Bars received overwhelmingly positive feedback. The Company has strong celebrity endorsers and sponsorships lined up to support the product launch.
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Currently trading at a $36 million market valuation FITX has managed to capture the imagination of small cap Investors like no other bb. We will be updating on FITX on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with FITX and the CEN biotech Judicial Review.
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Disclosure: we hold no position in FITX either long or short and we have not been compensated for this article.