I. COMPANY SUMMARY OF FITX:
**(Most up to date headlines/articles follow summaries below.)
Creative Edge Nutrition (FITX) is the umbrella holding company. They are based in Madison Heights, Michigan. The company vision has been to build by organic growth and strategic acquisitions in a "vertical integration" strategy, for the purpose of quickly increasing revenue streams for company growth, while cutting out middle-man costs. Revenue brought in from all subsidiary revenue streams listed below comes into the umbrella company, FITX. Bill Chaaban (CEO), has repeatedly stated, "There are NO current plans for a reverse split or an increase in authorized or outstanding shares. We are exploring the share buy back options." This has been repeatedly publicly stated as recent as March. Further historical development of FITX can be read further down.
Under the FITX umbrella, there are 3 primary business subsidiaries:
This subsidiary will be 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. Basically, these other "MMJ" revolve and exist around the actual product (marijuana) that we will be producing in MASS quantity. Their 85,000 square foot buildings with multiple floors and 10.3 acre production facility is expected to have the capacity to produce up to 1.3 million pounds of dried medical marijuana annually for Canadian distribution, as well as planned export to approximately 30 countries. FITX expects to generate revenue of $20 million in the 1st 12 months of operations, and $100 million/year by the 5th year of operations. FITX wants to eventually expand the facility to more than 1 million square feet on multiple floors, which would translate to $5 billion/year in revenue, with an anticipated profit margin of 80%. FITX plans to grow 50 strains of marijuana, from seeds sourced in Canada, Mexico and Colombia. The website is http://www.cenbiotechinc.com/PlatformApps/CEN/index.html
-On 3/2/14 Bill stated on Facebook, "We are aiming for an accelerated build out of our existing 27,000 sq ft building. We anticipate completion within 8 to 10 weeks when we will call for inspection." (In the 420 Investor interview with Alan Brochstein, he mentioned that Health Canada requested that they expedite the build out, so they decided to retrofit the existing building prior to finishing the build out of the larger new building, which they continue to do at the same time).
-On 3/3/14 Bill stated on Facebook, "We only have to have the fence, the security protocol and cameras, vault and software in place."
-In an article 3/4/14, Bill stated, “We anticipate our license being issued in 8-12 weeks.” http://www.dailytribune.com/general-news/2014...edical-pot
2) HEMP TECHNOLOGIES:
This well-established company was acquired with a majority ownership by FITX in 3/2014. Bill Chaaban, CEO & President of Creative Edge Nutrition stated, “we are very excited to have acquired Hemp Technologies Ltd. This will allow us to become growers and resellers of hemp and hemp products worldwide. It compliments our corporate mission of becoming a licensed grower and reseller of medical marijuana. We intend to utilize hemp for the extraction of CBD’s where allowed by law; in addition to all other activities being currently undertaken by Hemp Technologies Ltd.” Bill hired Anndrea Hermann as President of Hemp Technologies Ltd and Chief Scientific Officer for Creative Edge Nutrition Inc. in 3/2014. She has an extremely impressive and well-educated background. Notably, her resume shows: "Health Canada Authorized THC, Seed, Derivative, and Crop Sampling with Transporting, 2005-Present", as well as President of the Hemp Industries Association. Further details of her impressive resume can be seen here: http://renewablematerials.oregonstate.edu/anndrea-hermann
Also, on 3/27/14, Bill stated on Facebook:
"Great day today with Anndrea Hermann presenting to the local farmers in Lakeshore, Ontario. We will be doing hemp trials in essex county."
The website is http://www.hemp-technologies.com
3) CENERGY NUTRITION:
This subsidiary is our personalized sports supplement nutritional line. Cenergy products are sold on the biggest online supplement stores including Amazon, Bodybuilding.com, Europa Sports, Prosource, NutritionExpress, multiple others, and getting great reviews and placement on the bodybuilding.com product popularity charts. Our products were outselling more than HALF of the 418 products sold on the biggest online supplement store, bodybuilding.com (#189 on 2/4/14). The website is http://www.cenergynutrition.com
--> Notably, Leonard Armenta serves as Vice President of Brand Management & Marketing. Prior to joining Cenergy in 2013, he served as the Chief Operating Officer and later, Executive Vice President of MusclePharm (MSLP). He was instrumental in MusclePharm becoming one of the leading U.S. nutritional brands with massive growth and revenues, and he was responsible for placing MusclePharm into the largest US distributors and in over 35 International countries.
-->We sponsor several MMA fighters (who continue to win with Cenergy plastered on their shorts), an NFL player, and several fitness models. The supplement side of this company is a tremendous asset to us, and will continue to be.
-->As part of Cenergy Nutrition, there is also a "Cenergy Natural" line. One is a premium grade Hemp Protein supplement line (HEMPNORTHAMERICA.COM), and the other is a premium Chia Seed based supplement line (CHIANORTHAMERICA.COM).
II. As part of the strategic acquisitions and vertical integration strategy discussed above, FITX made multiple company acquisitions:
1) 4 active revenue-generating online nutritional supplement stores: SUPPLEMENTSTOGO.COM, A-Z-NUTRITION.COM, WORLDCLASSNUTRITION.COM, CHESAPEAKENUTRACEUTICALS.COM. If you go to these sites, at the top you'll see they are owned by Creative Edge Nutrition (FITX). These additional websites not only give us revenue from our own Cenergy line, but also revenue from selling all the major supplement and bodybuilding brands out there.
2) 3 active revenue-generating brands/companies: SCIENCE DEFINED NUTRITION (makes the popular Rogue sports nutrition supplement line), SCI-FIT, NATURE'S SCIENCE.
3) 3 active revenue-generating "Canadian Nutrition Superstores", which consist of brick and mortar nutritional supplement stores in Canada, selling all the major supplement and bodybuilding brands.
4) Seeds R Us Inc., which imports and distributes nutritious seeds such as chia seeds. Many of these seeds such as chia are incorporated into our products.
5) SCD Enterprises, LLC
6) Innovative Fulfillment Corp, which was an already profitable company producing sales.
7) Hemp Technologies Ltd (3/7/14): Bill Chaaban, CEO & President of Creative Edge Nutrition stated, “we are very excited to have acquired Hemp Technologies Ltd. This will allow us to become growers and resellers of hemp and hemp products worldwide. It compliments our corporate mission of becoming a licensed grower and reseller of medical marijuana. We intend to utilize hemp for the extraction of CBD’s where allowed by law; in addition to all other activities being currently undertaken by Hemp Technologies Ltd.”
III. SUMMARY OF FITX HISTORICAL PROGRESS:
The building of FITX up to this point has been carried out strategically in a very small amount of time in a business sense, as detailed below:
1) Bill Chaaban didn't become CEO until April 2012. This is when the real history of FITX began. Everything before this, including the reverse merger into the LBGE shell in 2011, is now irrelevant history. When he came on board, Creative Edge Nutrition had an idea for a single product, Metabolic Xtreme, but no actual products or revenue. Bill put an impressive team together with 4 attorneys (Bill himself is a licensed attorney and dual citizen in both US and Canada), doctors, and scientists and began to progress the company significantly and quickly. However, let's review the important background of how FITX has developed:
The business of LBGE was a completely different and unrelated type of business, and went defunct so Creative Edge reverse merged into the LBGE shell in 2011 in order to be able to expedite the process of becoming public. The initial CEO of Creative Edge named after the reverse merge was Paul Thomas. He was/is still the CEO of EST Nutrition (so he was wearing two hats). At that point, Creative Edge had 1 product in R+D (Metabolic Xtreme), which he basically dropped the ball on, as well as getting Creative Edge going (I'm speculating there may have also been some concern with competing products with his personal nutrition company). Bill Chaaban was then brought in to replace him in April 2012. Shortly after becoming CEO, Bill started really getting the business going. Not only did he bring Metabolic Xtreme to market, but he quickly brought several other products through R+D and to market, including AminoPlex and HyperInfusion. Bill also quickly wanted to get a ticker change to reflect the current business which had nothing to do with the old business, so he had it changed from LBGE to FITX. Not only did he get the nutritional side of the company up and running strongly (which is still ongoing), he announced and began development of a MMJ subsidiary 3/2013, CEN-Biotech, and we have witnessed a tremendous growth in this subsidiary in a very short amount of time.
2) From day one, Bill described his long term plan of vertical integration and strategic acquisitions to not only build organically, bring in instant revenue streams to fund future company projects (obviously CEN-Biotech has been the major one), as well as build long term shareholder value. I have outlined these strategic acquisitions and vertical integration strategies above.
3) After only a short time since becoming CEO, the Cenergy line now has multiple products selling on multiple websites. Cenergy products are sold on the biggest online supplement stores including Amazon, Bodybuilding.com, Europa Sports, Prosource, NutritionExpress, multiple others, and getting great reviews with rapid movement up the bodybuilding.com product popularity charts. Our products were outselling more than HALF of the 418 products sold on the biggest online supplement store, bodybuilding.com (#189 on 2/4/14). THIS IS MAJOR PROGRESS.
4) On 3/25/13 FITX announced its entrance into the medical marijuana industry. We have made tremendous progress thus far in a VERY SHORT time period, which has catapulted us into a leading position in this new projected multi-billion dollar industry of medical marijuana, and our grow operation will be significantly larger than any other growers currently approved by Health Canada:
-FITX had caught the eye of the soon to be booming medical marijuana industry, and were invited to present at the ArcView meeting 1/23/14. Arcview is the largest angel investor/private investor network in this space. This investor group has been featured on the front page of Fortune Magazine, and interviewed on major financial stations. They don't allow just any company to present at their meetings.
-We have The Town Of Lakeshore Mayor, Former Canadian Provincial Minister Of Trade, President and CEO of the WindsorEssex Economic Development Corporation, and Royal Canadian Mounted Police backing us. We also have the land, existing buildings, and building permits/plans for expansion as weather has allowed (a brutal winter led to some slight delays). Bill has assured us that there are no zoning road blocks and they are working hand in hand with the town of Lakeshore, who is also very excited to be a part of this project.
-FITX received the "Ready to Build" letter from Health Canada in November 2013. On 1/9/14, FITX received Health Canada's approval of tracking compliance by utilizing a new state-of-the-art M3Hub Seed to Sale Tracking platform with our partner, EDXC, which meets and exceeds Health Canada's tracking compliance thresholds. FITX is now only awaiting the final license from Health Canada, pending inspection as per the timelines outlined above.
-FITX is actively involved with advancing the medical marijuana bills in Michigan, involved with the local government, and has hired lobbyists to assist in this. FITX has announced that they are poised to be a leader in the Michigan medical cannabis industry as legalization becomes reality.
-We are represented by the 2013 PR Agency of the year, 5W. They work for a huge list of household name celebrities and companies (such as McDonald's, GQ, 1800 Tequila, Barne's & Noble, Microsoft MSN, Welch's, Cold-EEZE, IHOP, Wyndham, Snoop Dogg, Pam Anderson to name a few). This company doesn't take on just some typical "penny stock" company. Proof of this can be seen on the 5W website, where Creative Edge Nutrition is listed under the "Healthcare" category as seen below: http://www.5wpr.com/clients/index.cfm
-Bill Chaaban (CEO) made a recent business trip to Humboldt County and the Emerald Triangle in CA, and he stated that there was "Business for Creative". This suggests MASSIVE things to come. For those that aren't familar with the marijuana subculture, Humboldt county and the Emerald Triangle have always been the Mecca of marijuana grow ops and the best grown marijuana. If CEN-Biotech is working with ANYONE in this area, this will be a HUGE development!
3/14/14: How Much Could Michigan Gain In Marijuana Tax Revenue? (Article does not directly discuss FITX, but is relevant since they are based in MI and plan to enter MMJ industry there.) http://m.benzinga.com/article/4392282
3/9/14: This 420 Investor interview with CEO Bill Chaaban of Creative Edge Nutrition (FITX) addresses the Hemp Technologies acquisition (announced 3/7), including financial and organizational details not covered in the initial press release, restricted shares and limited insider selling, the path to uplisting and the time-lines for completion of the CEN Biotech project, licensing and first sales from the facility. http://www.marketfy.com/product/420investor/l...iew/42181/
2/10/14: "420 Investor" founder Alan Brochstein's 2 hour interview with Bill Chaaban, CEO of Creative Edge Nutrition (FITX) to discuss the CEN Biotech project in Windsor. He also discusses partners GrowLife (PHOT) and Endexx (EDXC). THIS IS A MUST LISTEN!!! http://marketfy.com/product/420investor/lesso...iew/40147/
2/5/14: Cannabis Financial Network Executive Interview with Bill Chaaban, CEO of Creative Edge Nutrition (FITX), from TDM Financial:
In this episode we will be talking to Mr. Bill Chaaban, President and CEO of Creative Edge Nutrition, a publicly traded company in the legal cannabis sector which trades under ticker symbol FITX. Mr. Chaaban discusses the company's partially owned subsidiary, CEN Biotech. CEN Biotech, Inc. was established in 2013 as a partially owned subsidiary of Creative Edge Nutrition (FITX) for the sole purpose of supplying the Canadian public with pharmaceutical-grade medical cannabis under the newly established Marihuana for Medical Purposes Regulations (MMPR) CEN Biotech Inc. has submitted a comprehensive application to become a licensed producer (LP) of dried marihuana for medicinal purposes and has received a ready-to-build approval from Health Canada. http://vimeo.com/85940052
2/3/14: CEN Biotech Inc. (FITX) Clarification on Ownership of the World's Largest and Most Advanced Legal Cannabis Production Facility. (This was for clarification to shareholders that FITX owns 75% of Cen Biotech, Inc., stamping out rumors of only 10% ownership) http://www.marketwatch.com/story/cen-biotech-..._news_stmp
1/10/14: A SUMMARY OF SENATE BILL 660 FOR PHARMACEUTICAL-GRADE CANNABIS IN MICHIGAN, AS REPORTED FROM HOUSE COMMITTEE 12/10/13: (At the bottom under "Positions", CEN-Biotech is the first listed supporter of the bill. CEN-Biotech has also announced that they have hired lobbyists to assist in helping obtain approval of the bill). http://www.legislature.mi.gov/documents/2013-...28D210.pdf
1/8/14: CEN BioTech Inc - Ready to Build Press Conference (Video). This is a press event held by the Essex Windsor Growth & Development Council for the announcement of a 12M Investment by CEN BioTech Inc. to build a state of the art production facility in the Lakeshore Ontario region. THIS IS A MUST WATCH VIDEO!!!! http://vimeo.com/83685127
1/7/14: Investor On Lakeshore's Medical Marijuana Plant: TheWindsorStar (VIDEO). Joseph Bryne, investor with CEN Biotech, talks about the announcement of a $12-million investment by CEN Biotech to build a medical marijuana plant in Lakeshore near the OPP branch on Manning Road. https://www.youtube.com/watch?v=O16a95nUO8Y
1/3/14: Is Cannabis The Next Big Thing? As State and Local governments begin decriminalizing marijuana, big money is scrambling to find a way to invest. (FITX featured in YouTube video at minute 1:45). https://www.youtube.com/watch?v=8NRw2LLI5sQ
**Product popularity is rapidly rising on the biggest and most popular on-line sports nutrition supplement store, bodybuilding.com. On 2/4/14, Cenergy Nutrition was ranked #189 most popular among 418 brands sold on the site, outselling more than HALF of all products sold there. Follow popularity movement up at http://www.bodybuilding.com/store/popular-brands.html