What has been speculation for months appears to have become fact according to Canada's national newspaper.
February 15, 2015: According to a Valentine's Day article published in Canada's national newspaper, The Globe and Mail, CEN Biotech, a subsidiary of Creative Edge Nutrition (FITX), another OTC penny stock scam attempting to benefit from the hoopla surrounding the medical marijuana industry, is going to be denied a license to grow pot by Health Canada. The decision effectively finishes FITX's ability to generate wealth for company insiders, but not before former CEO Bill Chaaban managed to extract at least three and more likely over $5 million in stock sales.
According to the Globe article, which was written by Grant Robertson, a reporter who has written several hard-hitting reports on the scheme,
Amid serious questions about the company’s conduct, including allegations of misrepresentation and false claims by the CEO, Health Canada informed CEN Biotech in a letter late Friday that the government intends to refuse its application for a licence.FITX. Those that refuse to stop believing in fairy tales, such as this idiot, are using the beat-to-the-punch as as justification for accusations of false statements and "sensationalism". However, we find it difficult to believe that a 171 year bastion of Canadian journalism would have any motives for simply "bashing" an otherwise insignificant insect like Chaaban or his FITX scheme. To the contrary, the decline was a fait accompli if one was to believe that Health Canada had any conscience at all. With all the lies, fraud and cover ups employed by Chaaban and company over the last year, the Canadian Government had no choice but to reject the application. Demonstrably, Health Canada holds the public's interests closer to the heart than the SEC, whose own ineptitude is the only reason shares of FITX have avoided a suspension and relegation to the grey market. The Globe and Mail's access to presumably reliable sources--as all good journalistic publications have--gave it the jump on the story, but an advance article is not a reason to accuse it or its reporters of bashing or sensationalism. To that effect, later that same evening, CTV News and the Windsor Star published their own stories, confirming the early morning Globe and Mail report.
“Based on a thorough assessment in line with the extensive requirements built into the Medical Marijuana Program, Health Canada has advised CEN Biotech of its intent to reject its application,” Health Canada spokesman Stéphane Shank said in a statement to The Globe and Mail.
The writing has been long on the wall for FITX. Many observers predicted Health Canada's rejection of the application long ago. The Globe and Mail's exposés were preceded by our own advisories, detailing FITX/Chaaban missteps and lies left mostly untouched by The Globe and other reporters. Those articles can be retrieved here, here and here. The only ones turning a blind eye to the signs are those who refuse to cut their losses, deluding themselves that a conspiracy exists against the company, when the only conspiracy was the one that was successfully carried out to lighten bag holders' wallets.
|Chart of FITX Share Price Over the Course of the Medical Marijuana Scheme|
It seems that even the FITX powers that be sensed what was coming. Now maybe the SEC will finally wake up.