Creative Edge Nutrition will not recover from the Canadian government's rejection of a license to grow pot and a subsequent statement implying that the company is lying.
February 22, 2015: In an unprecedented move destined to protect the investing public from an investment scam, the Canadian government, through its Department of National Health, issued a statement on Friday stating that CEN Biotech's update to shareholders of Creative Edge Nutrition, Inc. (FITX), "mischaracterizes the meaning of the Department’s recent action in respect of the application for a license to produce under the Marihuana for Medical Purposes Regulations (MMPR)."
Health Canada rightly felt it necessary to make clear the nature of its letter to the FITX subsidiary after the company released the misleading update. "On February 13, 2015, Health Canada sent a 'Notice of Intent to Refuse' to CEN Biotech in response to the license application. The MMPR requires that Health Canada give notice to any applicant to whom it intends to refuse a licence. The applicant is provided 20 days to provide written representations."
Last week, we relayed a report that Health Canada had informed the company of its intention through a letter. In an obvious attempt to create false hope for its investors and coerce more pigeons to feed on its stock, FITX attempted to pooh-pooh that letter by stating that the government was merely requesting more information from the company. The Health Canada statement clearly accuses FITX of lying.
» Related: FITX's Bill Chaaban Loses Count
No matter where you stand on FITX's attempt to gain a license, one thing is perfectly clear, and that is that Health Canada's accusations of fibbing are dead on. There is just no other way to characterize Thursday's press release from the company. It is not the first time FITX has lied, as we pointed out in this report and is a clear testament to Bill Chaaban's anything-to-get-rich priorities. It is also one of several events that has rightly caused concern that FITX's intentions are anything but honorable. The company certainly didn't ingratiate itself to Health Canada when it suggested that the agency had improperly provided advance information to Canada's national newspaper, The Globe and Mail. It would have been difficult for a government agency to grant a license for production of a controlled substance to an entity that cannot be considered trustworthy.
» Related: The FITX Fiasco: Bill Chaaban's Pants Are On Fire
Strangely, the application for relief was signed on behalf of the company by a certain "Roger Glasel" who does not appear to be an officer or director of either FITX or CEN Biotech, but merely an employee. Glasel already has the dubious distinction of both concocting alter ego, "Isak Weber", to act as a spokesperson of CEN, as well as falsely claiming that he--Glasel--had ties to Canadian Health Minster Rona Ambrose. Ms. Ambrose has denied knowing Glasel and expressed dismay at the name-dropping. These events certainly did not work in favor of CEN's attempt to gain a license.
» Related: FITX is Finished
With the recent findings, odds have significantly increased that the SEC, unlikely to go against a major government's findings, will find that there are "questions concerning the accuracy and adequacy of publicly available information". That would be the final and well earned death knell for FITX.