CEN Biotech Inc, a wholly owned Canadian subsidiary of the hotly debated publicly traded company Creative edge nutrition (OTC: FITX) which is actively engaged in seeking a licence to grow marijuana under Canada’s newly formed MMPR, filed it’s quarterly financials last week on the OTC markets. Both the company and it’s CEO, Dr. Bill Chaaban, who is a licensed attorney in both the US and Canada, and a self made millionaire in the dietary supplement, retail, and manufacturing business, have been the focus point of defamation, harassment, and ridicule over the past year or more by extremely harsh media critics in an alleged campaign to destroy the company’s image, and publicly traded value.
The company has filed application for judicial review through the federal courts in Ontario against the office of the Minister of Health in regards to a delay and/or failure of decision in issuing a Medical Marijuana grow license under the Canadian MMPR program. The company has a significant amount of evidence to suggest that a short and distort, or similar sort of defamation campaign has been been actively waged against the company during this time, and that Health Canada’s rejection of the company’s licence application was based upon false allegations and gross misrepresentation’s which were published by these individuals through some 70+ negative articles, or “hit pieces”, all containing remarkably similar content. Each time a positive press release was released or milestone was reached by the company, the company would be violently, and strategically attacked, wreaking havoc on the company’s market capitalization and share price.
Canadian newspaper reporter Grant Robertson of “The Globe and Mail”, and other writers in connection or association with the same, have repeatedly published misleading and defamatory statements about the company, stating that the company’s CEO was responsible for heavy share selling, while pocketing proceeds to the tune of some 4.3 million USD from 71 million shares, which they claimed had been used entirely to purchase personal real estate assets. However there is no evidence of substance to suggest that Chaaban ever used these share sales to actually purchase property. Only that certain real estate assets were paid off, consolidated, or refinanced. One of the 2 property’s in question was apparently a family property, not in his name. The allegations of Chaaban “share dumping” for personal gain are all related to harmful conjecture, with important details omitted, casting the CEO in a negative light.
The company’s quarterly report was released last week which contains some staggering information in light of these aforementioned allegations. If you read the filing you may notice an increase in investment inflows of 113.31% or an increase of $1,545,962.
The filing clarifies further by stating “Notes Payable-Related party” Two consultants and the prior President of the Company have loaned the Company $1,047,198 on unsecured demand notes payable. The notes have a conversion right as a remedy to cure any default of a maximum of 50-60% to the closing bid price with certain limits based on the reporting status of the Company. The loans carry 8-10% interest rates.
The prior President of the Company has loaned an additional $1,273,437 to the Company and converted certain accrued compensation due to him in the amount of $2,012,000 into secured notes payable carrying an interest rate of 12%. These are three year notes calling for monthly payments in the amount of $109,420 with a due date of October 31, 2017. The note in the amount of $2,012,000 was forgiven and treated as additional paid-in capital.”
We see similar loan language towards the company in previous quarters filings also. However based upon the above information, we now know from the financials that the 2,012,000 due to the CEO was completely forgiven. We also know that one of these other individuals, Jeff Thomas (VP), has loaned the company approximately $600,000 as well.
During the MMPR application and licencing process, goal posts set by the office of controlled substances are constantly moving, to the extent that it appears to be intentional stalling of the MMPR application process, creating very significant entry barriers and causing extreme financial burden to applicants. This has forced many business to pack up and close their doors. Many have spent millions preparing their facilities, filing their applications, and trying to stay afloat while they await final inspections that never come, only to be given a new set of requirements by Health Canada, adding further to delays and subsequent expenses with no revenue streams in sight.
It is for this reason that Bill Chaaban, and Jeff Thomas, have reinvested, even gifted money back to the company in large amounts. Typically, when a company needs capital for operations or expansion, and has limited income, they will dilute the company, provide share offerings, or increase debt, which puts the company in a more vulnerable position later down the road. These men have apparently done their best to avoid this, by selling their own personnel shares, for the benefit of the company and it’s shareholders.
There seems to already be arguments against Chaaban floating out on the message boards since this filing was released, suggesting that he still pocketed the remainder of what was sold. However, it is worth noting that firstly, there are additional business endeavors currently still outside of the FITX umbrella to protect the company that we believe the company’s CEO has paid for, and that secondly, personally financing the company in any capacity is extremely admirable in itself, let alone forgiving millions in debt, and shows an inordinate level of drive and dedication towards the company’s success, and personal loyalty towards shareholders. These are traits that are very rarely even found in today’s corporate world, let alone within the management of OTC company’s, and should be applauded.
Other notable highlights from the company’s filings include the following:
Intangible assets have increased by 41.17%. For those that are unaware, intangible assets are defined as, “An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today’s marketplace.”
The Company also purchased Gitty Up Food & Beverages Corporation for 200,000,000 shares of its common stock valued at $1,520,000. The full purchase price was allocated to goodwill and the Company is evaluating the intangibles to determine any impairment that may be needed.”
The company appears to be moving forward, despite the challenges it’s being faced with, however, share price has been severely affected in recent months by the challenges it has been presented with, and by vicious personal attacks against the company’s CEO and employees, and against the company in general by several morally depraved and corrupt individuals who have sought to interfere with and destroy the company’s image and damage shareholder value. Some of these individuals are still at large.
With any luck, perhaps this company has been through it’s darkest days.
“Never give in. Never give in. Never, never, never, never—in nothing, great or small, large or petty—never give in, except to convictions of honour and good sense. Never yield to force. Never yield to the apparently overwhelming might of the enemy.”
― Winston S. Churchill
Disclaimer: Author has no affiliation with any companies mentioned in this article and was not compensated in any way shape or form. Any opinionated content is the expression of the author. This article does not constitute a recommendation to buy or sell securities. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial adviser. Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies that can result in significant capital losses that may have a detrimental effect on the value of the fund. You should not buy securities unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.