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Posted On: 10/16/2014 10:14:28 AM
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CEN Biotech: To Infinity And Beyond 22 comments
Sep 16, 2014 3:38 PM | about stocks: FITX
CEN Biotech is rather quickly becoming the modern marvel of the entire marijuana industry. The long awaited release of MMPR license approval by Health Canada has given investors ample time to carefully scrutinize the company and determine the best course of action for their investment strategies. Cautious investors are seemingly on the sidelines waiting on imminent breaking news regarding license approval. Many other smart investors have used the recent press releases of CEN Biotech to tease out subtle clues regarding the company's prospects and license approval.
This article aims to analyze the recent press releases and give a brief technical analysis of CEN Biotech.
Open House
On September 9th, 2014, Cen Biotech announced a Q&A Open House event for residents of Lakeshore to engage in a friendly meeting regarding the medical marijuana facility in Lakeshore on September 23rd 2014. Bill Chaaban explained:
We look forward to meeting our friends and neighbors of Lakeshore in a more intimate setting. Our staff will be available to answer general questions about the MMPR and our facilities."
It is critical to note that Bill Chaaban has given an incredibly important statement regarding the open house event: MMPR license and facilities. Investors should be encouraged by his remarks, and gain even more confidence regarding license approval. The town of Lakeshore will be given a unique opportunity to discuss the future economical and agricultural prospects of the town in relation to the CEN facility. In addition, facility one and facility two are well underway of becoming what many Lakeshore residents believe to be employment epicenters. Many are eagerly anticipating the opening of the facilities in hopes of obtaining high-level employment that would expose them to a job market exclusively focused to patient health and education.
Of note the open-house event is not necessary, and few MMPR licensed facilities have catered to the general public's interest. In fact, a large number of marijuana facilities outside of Ontario do not find it feasible and even costly and time consuming to provide an open house for residents near their facility. Cen Biotech recognizes this alarming disconnect and are setting an example in good business practices that support communties and residents in small towns such as Lakeshore. Bill Chaaban believes in mutual respect for the citizens of Lakeshore, and would like all citizens to have the opportunity to have their questions answered in an open and friendly atmosphere. Though some bashers have used the open house press release to mislead others (i.e., municipal approval is required) to put fear in an otherwise sound and strategic move in part of Cen Biotech.
Bill Chaaban explains at the Weedstock First Annual Conference:
"The minute a company gets licensed federally, cities [Lakeshore] lose jurisdiction. Cities or towns will not have the right to access the property because we become a federally licensed and inspected facility. But CEN wants to operate in Lakeshore and we want to be a good neighbor and good corporate citizens-[thus out of mutual respect], we still have their inspectors come in and have everything in compliance with them and approved by them. But this is not necessary."
Simply stated, the town of Lakeshore and the municipal board of directors must also abide by the rules and bylaws of Health Canada. In fact, many citizens approve the facility and are eagerly awaiting the job stimulus it provides. Therefore, providing the open house for the residents of Lakeshore is a sign of good faith from CEN Biotech to ensure that this new facility is a change that many embrace as it provides the dire economic stability Lakeshore needs.
Lakeshore Job: The beginning
The town has a direct responsibility to its residents to provide a job market that will be stable, generate income, and sustain an economic growth for decades. A quick statistical analysis shows Lakeshore and near regions to have an unemployment rate of almost 7%, (April 2014) causing serious concern for residents. Furthermore, Statistical Canada, a government funded research department that gives statistical analysis of the job market inCanada recently explained "labor productivity of Canadian businesses unexpectedly dropped by 0.1% in the first quarter of 2014, the first decline for18 months. The last drop in productivity was the 0.4% decline seen in the third quarter of 2012. The data also confirms the Canadian job market has slowed drastically over the last year." (April 2014)
CEN Biotech: Employment Opportunity
CEN Biotech has strategically prepared the company to provide pharmaceutical grade medicinal marijuana to patients in Canada and worldwide; the residents of Lakeshore are at a very unique advantage to obtain jobs in a kaleidoscope of areas in medicine and patient consumer business.
Many investors should quickly begin to realize the ambitious undertaking that CEN Biotech has created for the town and future opportunities available to patients. MMPR licensed producers require an excellent rapport with licensed medical professionals able to diagnose and prescribe medicinal marijuana to patients with various ailments. This relationship is an intricate and delicate balance between patient satisfaction and quality of product enhanced with physician education. Patient registration, admission, distribution,insurance claims, billing, and financial services are all intricate complexities that bridge patients with their providers. CEN Biotech will play a larger role in this collaborative effort with the help of thousands of Lakeshore employees to streamline this process successfully. Lakeshore employees will bring a consumer mentality to the medical market and help with price transparency of not just medicinal marijuana, but other prescription medication aimed to treat patient ailments.
With the aforementioned job employment opportunities, CEN Biotech can potentially create as much as 2000 jobs within 2-3 years; roughly 5% job growth for a town that has a 5.2% unemployment rate. (2011 consensus)The CEN facility can potentially eliminate the entire unemployment concerns or drastically reduce it single handedly. This will allow to stimulate the economy and provide Lakeshore and its citizens the ability to become the most progressive town in all of Canada.
CEN Biotech and Physicians
CEN Biotech has the unique ability to provide healthcare providers new patients in a potentially untapped area of medicine that has been unregulated for decades. The quality of product and patient satisfaction will provide many healthcare providers patient loyalty as marijuana becomes an attractive avenue to utilize for pain management, rehabilitation, and other various ailments. More on this will be covered as CEN Biotech obtains license and explains future plans to bridge the gap between patients, physicians,and pharmaceutical cannabis companies.
CEN Biotech: Class in Session
With great power comes great responsibility. This idea has resonated in the actions of CEN Biotech relentlessly. In what appears to be one of the largest training preparations for production of medical grade cannabis at the Lakeshore facility, Bill Chaaban released a press article on the company's facebook page on September 11th, Thursday:
"CEN Biotech has hired The Academy of Applied Pharmaceutical Sciences to conduct a five day course for our staff regarding the "Fundamentals of Quality Assurance for Medical Marihuana- Good Production Practices". This course runs today through Monday."
The Academy of Applied Pharmaceutical Sciences [AAPS] is a registered private career institution with a wide range of specific pharm courses with expert professionals teaching students and professionals the training needed to adequately prepare for their profession. Likewise, professionals requiring advanced courses such as continuing education can utilize this institution for their specific hours and education.
The training course appears to cost CEN Biotech $785 per person, in addition to on site fees. Further information can be found on AAPS website.
To this end, investors living within the facility's area noticed a busy site at throughout the week of training. The photograph below shows fifteen to twenty cars parked at the CEN Biotech facility, hinting that this training was not only an important catalytic event for the company, but also an important clue as to license approval. Speculating roughly that there were around 10-20 individuals at the five day training session, the entire training course cost somewhere between the range of $10,000 to $20,000 for the company.
(click to enlarge)
Courtesy: Matt Mc, long investor
CEN Biotech further explains:
"We have staff members present for this specialized training. It renews our commitment to quality and our pledge to continually invest in the Canadian economy. This is NOT a Health Canada requirement. It is a company initiative to ensure staff is trained by a recognized independent third party. It is our commitment to quality."
This costly training program is a serious and ambitious endeavor and would only be necessary if indeed license approval was in hand. In other words, why would Bill Chaaban and the company spend the monetary funds and their own company time to provide an extensive comprehensive training if they did not have license? Why would any staff member waste their own time and energy to learn the fundamentals of quality assurance and quality control if there were no attainable license in the midst? These are speculative questions that should give the average investor confidence and convey strength in the promise of CEN Biotech's future prospects.
The mystery demystified
More clues regarding CEN's license update can be demystified with other marijuana facilities that are initiating their ready to build letter phase. In a press release issues by Easton, they state that, " Two new medical marijuana licenses were recently issued by health Canada as they deal with a backlog and implement new security requirements for licensed producers and company's who have received letters to build"
Undoubtedly, these two "mysterious companies" are elusive to identify, but the recent turn of events such as the Health Canada inspection of the CEN Biotech facility on July 31st, the open house for the town of Lakeshore on Sept 23rd, and the costly one week training program conducted the week of Sept 12th to the 16th, would give investors credible evidence to be cross CEN off this "mystery list". In fact, I would speculate further that many of the previous companies approved by Health Canada will subsequently require post-hoc analysis on their statistical and operational product line-and utilize CEN Biotech's entire facility as a template for future operation. Perhaps one of the reasons for the time lapse and delay in license announcement is Health Canada's overhaul in their license approval list. I would not be surprised to see some facilities be crossed off the list or even revoked as CEN Biotech attains theirs.
Milestone Checklist
Many marijuana facilities often require to successfully pass certain milestones to advance into creating a sound MMPR facility. BCBud, a new marijuana facility for example is in the early stages of receiving their ready to build letter. BCBud explains in a press release:
"The key milestones remaining for BCBud to obtain a license include the following: receiving a Ready to Build letter; completion of the upgrades as per the Ready to Build letter; approval from Health Canada to produce upon inspection of the facility; and approval to distribute the product to patients."
It is important to note that CEN Biotech is well at the final stages of licensure. Furthermore, after successful inspection by Health Canada on July 31st 2014, one can also extrapolate that Health Canada has approved CEN to produce a pilot run of their cannabis product to ensure high quality product and streamline operation. Perhaps one of the main reasons CEN has yet to issue announcement of license is indeed the completion of trial runs requested by Health Canada.
Below is image of the important phases CEN Biotech has accomplished. Currently all security clearances and inspection of site were successfully passed (to our basic knowledge) and Health Canada is in the process of sealing the stamp of approval for MMPR license.
Courtesy: Fitxlong.com
FITX Technicals
Though I believe the fundamentals of a company for outweigh the technicals in any event, it is always important to rely on chart analysis for daily quantification of price movement. Below is a chart analysis by Mr. W Thatcher, a long-term FITX investor. Please begin the chart analysis in the series of steps 1-7 for further details. An important underlying technical here would be the consolidation pattern forming at the support .062 and resistance at .077
It is important to note that this is purely speculative. Investors should conduct their own chart analysis for further details.
(click to enlarge)
Courtesy: Mr. Thatcher
Authors note:
I have been given invaluable insight into what the marijuana sector will entail in the years to come, and CEN is becoming more and more attractive to my own investment strategies . The prospects of the company's pipeline are promising and the due diligence of the company by over 2000 investors is unmatched by any other. Investing in pennies on the dollar can be a risky investment, but with the overwhelming clues from the company, the transparency Bill Chaaban provides to shareholders, the merger acquisitions of HEMP Technologies and soon RXNB, and an extremely reputable board of directors, CEN Biotech has become a rare and solid investment opportunity. With a large base of investors that are scrutinizing every move of this company, it is of no surprise that this company has made significant strides to promise what it has delivered. It would be prudent to invest wisely, and in my humble opinion, I strongly believe CEN Biotech will be the next marvel of the century.
Disclosure: The author is long FITX.
Themes: marijuana industry, CEN Biotech, license approval Stocks: FITX
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1 Comments (22) Track new comments
Greenerdays
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Thank You, for another excellent article!! Exciting times for FITX for sure!! Simply AMAZING!!
16 Sep, 03:54 PMReplyLike3
robby71
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AWESOME!
16 Sep, 04:35 PMReplyLike1
theomeo
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No doubt Cen has gone over and above to provide a diversified company i.e. hemp, mj, and research. Also we are strengthening our fundamentals by having an audit, up lists and merger. Remember RXNB gives us in roads the US. But they are being cautious even if all of the above comes true with out quality assurance we have a problem like other MJ's are the product being bad which could really hurt the company. However, I do believe we have a winner here there is no doubt in my mind.
16 Sep, 04:53 PMReplyLike2
Smart guy 1
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Thank You for another excellent article. This should help to reassure newer investors of just how solid this company is. After watching it since January, I know that my investment is in the right place.
16 Sep, 04:56 PMReplyLike1
rise51
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Author’s reply » I agree with you Smart guy. This is by far the best and least risky investment I have yet to find.
16 Sep, 05:42 PMReplyLike1
nase8
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Lets just hope the license is announced at the open house or we could see a big dropping out in confidence.
16 Sep, 05:48 PMReplyLike3
rise51
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Author’s reply » Folks, please keep posts relevant to constructive commentary rather than bashing the author or the ideas here.
Thank you
16 Sep, 06:11 PMReplyLike1
nase8
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That was neither bashing your or your ideas...the timeline has been pushed out so far this seems like it HAS to be the time to announce the license. Going to be a big let down to many if it is not, and the pps will reflect it.
17 Sep, 09:02 AMReplyLike1
rise51
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Author’s reply » I wasn't talking about u Nash , that's why ur comment wasn't deleted. Others posts that were immature and disrespectful I removed.
Thanks for reading the article!
17 Sep, 09:34 AMReplyLike1
Mikie713
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I agree, Nase, this is the defining moment. If investors walk away from this open house with either no license in the immediate future or no clear idea when one will likely be forthcoming, there is no longer room to speculate. Or they should expect another open house in Feb. 2015 to be strung along for another six months.
17 Sep, 10:00 AMReplyLike0
rise51
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Author’s reply » no one is being "strung along" here, we are seeing the future unfold and it looks promising. Read that new article regarding HC being backlogged, regarding other companies with the same issue as CEN. Health Canada should be giving news, but no one knows when. Everything else is just background noise.
17 Sep, 11:51 AMReplyLike0
Mr. Happy Invests
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This company continues to set new standards and is a leader for all the rest to follow. Consider this the beginning of a real medical Marijuana company with Sterile facilities , trained , employees, expert board of directors, and real testing of product.
16 Sep, 11:47 PMReplyLike2
smithgh72
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I have been following Bill since January and I am an investor. This article calls out "Bashers" for making the statement that Municipal approval is needed, IT IS! If you care to read the minutes from the Town Meetings you will see that the re-zoning has been deferred. There are new by-laws that where not even on the books when Bill obtained the necessary permits to build. Also there is opposition from the residents and that is the reason for the "Q&A Open House". I am long on FITX and a Billiever so please check your DD before making remarks that you have not investigated.
19 Sep, 06:04 PMReplyLike0
smithgh72
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By the way here is my DD to confirm what I have said. http://bit.ly/YZJsfL Also HC guidance for following Municipal zoning. It is the LP’s responsibility to ensure that provincial, municipal and federal legislation including building and fire codes are complied with. Health Canada’s Office of Controlled Substances is the authority responsible for licensing and compliance monitoring under the Next link will take you to another Web site Controlled Drugs and Substances Act(CDSA) and MMPR. http://bit.ly/YZJqo5
19 Sep, 06:36 PMReplyLike1
rise51
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Author’s reply » there is no opposition from most residents actually.
and actually i have researched this before, and you are absolutely right with your DD! However, a key note here is that the municipal board of Lakeshore has already agreed with the facility to be made at the town. ALSO, per the ministry of health of Canada, they were the ones that approved the facility, and after a successful inspection (security, building, permits) CEN BIOTECH has been APPROVED for ALL THESE FACTORS.
So the real question is why is license taking so long?
It appears HC has a backlog of facilities and many other mj companies are feeling the heat. So this really is not an issue specific to CEN BIOtech, but is more of a general issue that most companies obtaining approval are experiencing.
Be PATIENT, and STAY LONG ON THIS ONE!
20 Sep, 11:33 AMReplyLike0
rise51
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Author’s reply » Also, thank you so much for actually giving constructive criticism as opposed to most bashers who just come here and call names and act in a bad taste of professionalism.
I really appreciate that.
20 Sep, 11:35 AMReplyLike0
Mikie713
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So what we're looking at here are "circumstances beyond our control" as to what is delaying things. Meanwhile, MMPR's growth/success is dependent on two catalysts: the MMAR/MMPR litigation and Canada's 2015 election (legalization). Until the outcome of these events are decided $FITX is going no where, license or no. None of this appears ANYWHERE in the articles you've written. Elephant in the room? And don't you think the "braintrust" at $FITX knows this? Both the injunction and the potential of recreational MJ becoming law in Canada are even greater hurdles than the license itself. And yet all $FITX talks about is the license. Like it's the golden ticket to Willie Wonka's Chocolate Factory. This could go on for a year, maybe two, maybe three.
20 Sep, 12:54 PMReplyLike0
Mikie713
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Were I running things at $FITX and serious about making money in this fledgling pot business right now -- I'd pull up stakes in Canada, cut my losses and run the other way. Set up shop in Oregon, which is very nearly sure to vote rec pot within weeks. And quite possibly by 2016, California will follow. That creates a market from Alaska to the Mexico border with a population of potential customers greater than the population of all of Canada.
Seriously though Bill isn't interested in that kind of logic, he's doing just fine selling his shares bit by bit and capitalizing on his investor's hopes and dreams. How much has he cashed in this year alone? Publish the number in one of your articles. The man is an opportunist at best.
This is what I mean when I say "being strung along."
Yeah, they'll get the license eventually. Everyone will say I told you so and the stock will spike to .11 etc. Bill will cash in even more ... but this business in reality is 3 to 5 years away from realizing anything. And by then either its CEO or the business itself will already be gone.
20 Sep, 01:06 PMReplyLike0
rise51
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Author’s reply » Mikie, MMPR is not an issue, it is already a law. and recreational mj laws are not relevant to CEN BIOTECH at this point. We are catering to patients who require mj use for various ailments diagnosed by physicians. what you are talking about is irrelevant and something that will be an issue in 3-4 years; in which would bring even more patients/clients into the norm.
Imagine taking a dilute assay of CBD medication catered to a specific ailment, (i.e., chronic pain, tension headache, etc), and not using the harmful side effects of pain medication (damage to liver, kidneys, vital organs).
In any regard, I appreciate your post. Finally some healthy conversation!
20 Sep, 01:10 PMReplyLike0
Mikie713
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Rise, there was and is an injunction of the new law, so the law is not yet LAW. The situation remains in flux. The citizens of Canada are protesting the weed they were able to grow on their own will skyrocket in price if they had no other recourse but to purchase weed from the likes of CEN BIOTECH (and others already licensed and growing - TWEED). Until that is settled ( and don't expect it to be for at least another 6 months) potential profitability of commercial growers is slimmed down considerably. Which means there's no point to license any new growers. Secondly, there's no guarantee the decision will go in favor of commercial growers when it does come down. Where is any of this in your assessment of $FITX going forward? If in fact the decision goes against the commercial growers (or there's some kind of median ground reached), we have a problem in Canada. Not just with $FITX, but with dozens of others and the millions they've already invested. Not that the entire industry will go belly up, but the prospects are deflated. And the markets don't react favorably to that.
20 Sep, 01:22 PMReplyLike0
rise51
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Author’s reply » Mickie, I don't agree at all. That injuction was months ago and it only allowed current growers growing in small homes to continue supplying until big companies that are regulated, with no toxic byproduct, high grade cannabis to be medically monitored and grown. Don't listen to the bashers who continue to instill dead into a sound investment strategy.
And if necessary, I will address this in the next article to alleviate all concerns investors on the fence might have.
FITX is the best company to invest in out of all the other public ones.
20 Sep, 02:25 PMReplyLike0
smithgh72
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This is an industry in its infancy, there are not even laws on the books to regulate it. That's what this is all about regulation or red tape as I call it. Once these hoops have been cleared an people become more receptive to the MMj industry we will see the positive effects. I do not bash, I do my homework and investigate. Sometimes I find things that I don't like and some times I find positive things. Cen-Bitotech is one of the most positive positions I have. So friends buy the dips and wait for this team to do what they do best....
20 Sep, 03:10 PMReplyLike1
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I am here to seek and learn from the astute and be engaged in active debate about investing in stocks, particulary in stock options.
My blog:
Desmond Fargo
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Comments (82)
CEN Biotech: To Infinity And Beyond 22 comments
Sep 16, 2014 3:38 PM | about stocks: FITX
CEN Biotech is rather quickly becoming the modern marvel of the entire marijuana industry. The long awaited release of MMPR license approval by Health Canada has given investors ample time to carefully scrutinize the company and determine the best course of action for their investment strategies. Cautious investors are seemingly on the sidelines waiting on imminent breaking news regarding license approval. Many other smart investors have used the recent press releases of CEN Biotech to tease out subtle clues regarding the company's prospects and license approval.
This article aims to analyze the recent press releases and give a brief technical analysis of CEN Biotech.
Open House
On September 9th, 2014, Cen Biotech announced a Q&A Open House event for residents of Lakeshore to engage in a friendly meeting regarding the medical marijuana facility in Lakeshore on September 23rd 2014. Bill Chaaban explained:
We look forward to meeting our friends and neighbors of Lakeshore in a more intimate setting. Our staff will be available to answer general questions about the MMPR and our facilities."
It is critical to note that Bill Chaaban has given an incredibly important statement regarding the open house event: MMPR license and facilities. Investors should be encouraged by his remarks, and gain even more confidence regarding license approval. The town of Lakeshore will be given a unique opportunity to discuss the future economical and agricultural prospects of the town in relation to the CEN facility. In addition, facility one and facility two are well underway of becoming what many Lakeshore residents believe to be employment epicenters. Many are eagerly anticipating the opening of the facilities in hopes of obtaining high-level employment that would expose them to a job market exclusively focused to patient health and education.
Of note the open-house event is not necessary, and few MMPR licensed facilities have catered to the general public's interest. In fact, a large number of marijuana facilities outside of Ontario do not find it feasible and even costly and time consuming to provide an open house for residents near their facility. Cen Biotech recognizes this alarming disconnect and are setting an example in good business practices that support communties and residents in small towns such as Lakeshore. Bill Chaaban believes in mutual respect for the citizens of Lakeshore, and would like all citizens to have the opportunity to have their questions answered in an open and friendly atmosphere. Though some bashers have used the open house press release to mislead others (i.e., municipal approval is required) to put fear in an otherwise sound and strategic move in part of Cen Biotech.
Bill Chaaban explains at the Weedstock First Annual Conference:
"The minute a company gets licensed federally, cities [Lakeshore] lose jurisdiction. Cities or towns will not have the right to access the property because we become a federally licensed and inspected facility. But CEN wants to operate in Lakeshore and we want to be a good neighbor and good corporate citizens-[thus out of mutual respect], we still have their inspectors come in and have everything in compliance with them and approved by them. But this is not necessary."
Simply stated, the town of Lakeshore and the municipal board of directors must also abide by the rules and bylaws of Health Canada. In fact, many citizens approve the facility and are eagerly awaiting the job stimulus it provides. Therefore, providing the open house for the residents of Lakeshore is a sign of good faith from CEN Biotech to ensure that this new facility is a change that many embrace as it provides the dire economic stability Lakeshore needs.
Lakeshore Job: The beginning
The town has a direct responsibility to its residents to provide a job market that will be stable, generate income, and sustain an economic growth for decades. A quick statistical analysis shows Lakeshore and near regions to have an unemployment rate of almost 7%, (April 2014) causing serious concern for residents. Furthermore, Statistical Canada, a government funded research department that gives statistical analysis of the job market inCanada recently explained "labor productivity of Canadian businesses unexpectedly dropped by 0.1% in the first quarter of 2014, the first decline for18 months. The last drop in productivity was the 0.4% decline seen in the third quarter of 2012. The data also confirms the Canadian job market has slowed drastically over the last year." (April 2014)
CEN Biotech: Employment Opportunity
CEN Biotech has strategically prepared the company to provide pharmaceutical grade medicinal marijuana to patients in Canada and worldwide; the residents of Lakeshore are at a very unique advantage to obtain jobs in a kaleidoscope of areas in medicine and patient consumer business.
Many investors should quickly begin to realize the ambitious undertaking that CEN Biotech has created for the town and future opportunities available to patients. MMPR licensed producers require an excellent rapport with licensed medical professionals able to diagnose and prescribe medicinal marijuana to patients with various ailments. This relationship is an intricate and delicate balance between patient satisfaction and quality of product enhanced with physician education. Patient registration, admission, distribution,insurance claims, billing, and financial services are all intricate complexities that bridge patients with their providers. CEN Biotech will play a larger role in this collaborative effort with the help of thousands of Lakeshore employees to streamline this process successfully. Lakeshore employees will bring a consumer mentality to the medical market and help with price transparency of not just medicinal marijuana, but other prescription medication aimed to treat patient ailments.
With the aforementioned job employment opportunities, CEN Biotech can potentially create as much as 2000 jobs within 2-3 years; roughly 5% job growth for a town that has a 5.2% unemployment rate. (2011 consensus)The CEN facility can potentially eliminate the entire unemployment concerns or drastically reduce it single handedly. This will allow to stimulate the economy and provide Lakeshore and its citizens the ability to become the most progressive town in all of Canada.
CEN Biotech and Physicians
CEN Biotech has the unique ability to provide healthcare providers new patients in a potentially untapped area of medicine that has been unregulated for decades. The quality of product and patient satisfaction will provide many healthcare providers patient loyalty as marijuana becomes an attractive avenue to utilize for pain management, rehabilitation, and other various ailments. More on this will be covered as CEN Biotech obtains license and explains future plans to bridge the gap between patients, physicians,and pharmaceutical cannabis companies.
CEN Biotech: Class in Session
With great power comes great responsibility. This idea has resonated in the actions of CEN Biotech relentlessly. In what appears to be one of the largest training preparations for production of medical grade cannabis at the Lakeshore facility, Bill Chaaban released a press article on the company's facebook page on September 11th, Thursday:
"CEN Biotech has hired The Academy of Applied Pharmaceutical Sciences to conduct a five day course for our staff regarding the "Fundamentals of Quality Assurance for Medical Marihuana- Good Production Practices". This course runs today through Monday."
The Academy of Applied Pharmaceutical Sciences [AAPS] is a registered private career institution with a wide range of specific pharm courses with expert professionals teaching students and professionals the training needed to adequately prepare for their profession. Likewise, professionals requiring advanced courses such as continuing education can utilize this institution for their specific hours and education.
The training course appears to cost CEN Biotech $785 per person, in addition to on site fees. Further information can be found on AAPS website.
To this end, investors living within the facility's area noticed a busy site at throughout the week of training. The photograph below shows fifteen to twenty cars parked at the CEN Biotech facility, hinting that this training was not only an important catalytic event for the company, but also an important clue as to license approval. Speculating roughly that there were around 10-20 individuals at the five day training session, the entire training course cost somewhere between the range of $10,000 to $20,000 for the company.
(click to enlarge)
Courtesy: Matt Mc, long investor
CEN Biotech further explains:
"We have staff members present for this specialized training. It renews our commitment to quality and our pledge to continually invest in the Canadian economy. This is NOT a Health Canada requirement. It is a company initiative to ensure staff is trained by a recognized independent third party. It is our commitment to quality."
This costly training program is a serious and ambitious endeavor and would only be necessary if indeed license approval was in hand. In other words, why would Bill Chaaban and the company spend the monetary funds and their own company time to provide an extensive comprehensive training if they did not have license? Why would any staff member waste their own time and energy to learn the fundamentals of quality assurance and quality control if there were no attainable license in the midst? These are speculative questions that should give the average investor confidence and convey strength in the promise of CEN Biotech's future prospects.
The mystery demystified
More clues regarding CEN's license update can be demystified with other marijuana facilities that are initiating their ready to build letter phase. In a press release issues by Easton, they state that, " Two new medical marijuana licenses were recently issued by health Canada as they deal with a backlog and implement new security requirements for licensed producers and company's who have received letters to build"
Undoubtedly, these two "mysterious companies" are elusive to identify, but the recent turn of events such as the Health Canada inspection of the CEN Biotech facility on July 31st, the open house for the town of Lakeshore on Sept 23rd, and the costly one week training program conducted the week of Sept 12th to the 16th, would give investors credible evidence to be cross CEN off this "mystery list". In fact, I would speculate further that many of the previous companies approved by Health Canada will subsequently require post-hoc analysis on their statistical and operational product line-and utilize CEN Biotech's entire facility as a template for future operation. Perhaps one of the reasons for the time lapse and delay in license announcement is Health Canada's overhaul in their license approval list. I would not be surprised to see some facilities be crossed off the list or even revoked as CEN Biotech attains theirs.
Milestone Checklist
Many marijuana facilities often require to successfully pass certain milestones to advance into creating a sound MMPR facility. BCBud, a new marijuana facility for example is in the early stages of receiving their ready to build letter. BCBud explains in a press release:
"The key milestones remaining for BCBud to obtain a license include the following: receiving a Ready to Build letter; completion of the upgrades as per the Ready to Build letter; approval from Health Canada to produce upon inspection of the facility; and approval to distribute the product to patients."
It is important to note that CEN Biotech is well at the final stages of licensure. Furthermore, after successful inspection by Health Canada on July 31st 2014, one can also extrapolate that Health Canada has approved CEN to produce a pilot run of their cannabis product to ensure high quality product and streamline operation. Perhaps one of the main reasons CEN has yet to issue announcement of license is indeed the completion of trial runs requested by Health Canada.
Below is image of the important phases CEN Biotech has accomplished. Currently all security clearances and inspection of site were successfully passed (to our basic knowledge) and Health Canada is in the process of sealing the stamp of approval for MMPR license.
Courtesy: Fitxlong.com
FITX Technicals
Though I believe the fundamentals of a company for outweigh the technicals in any event, it is always important to rely on chart analysis for daily quantification of price movement. Below is a chart analysis by Mr. W Thatcher, a long-term FITX investor. Please begin the chart analysis in the series of steps 1-7 for further details. An important underlying technical here would be the consolidation pattern forming at the support .062 and resistance at .077
It is important to note that this is purely speculative. Investors should conduct their own chart analysis for further details.
(click to enlarge)
Courtesy: Mr. Thatcher
Authors note:
I have been given invaluable insight into what the marijuana sector will entail in the years to come, and CEN is becoming more and more attractive to my own investment strategies . The prospects of the company's pipeline are promising and the due diligence of the company by over 2000 investors is unmatched by any other. Investing in pennies on the dollar can be a risky investment, but with the overwhelming clues from the company, the transparency Bill Chaaban provides to shareholders, the merger acquisitions of HEMP Technologies and soon RXNB, and an extremely reputable board of directors, CEN Biotech has become a rare and solid investment opportunity. With a large base of investors that are scrutinizing every move of this company, it is of no surprise that this company has made significant strides to promise what it has delivered. It would be prudent to invest wisely, and in my humble opinion, I strongly believe CEN Biotech will be the next marvel of the century.
Disclosure: The author is long FITX.
Themes: marijuana industry, CEN Biotech, license approval Stocks: FITX
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1 Comments (22) Track new comments
Greenerdays
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Thank You, for another excellent article!! Exciting times for FITX for sure!! Simply AMAZING!!
16 Sep, 03:54 PMReplyLike3
robby71
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| + Follow | Send Message AWESOME!
16 Sep, 04:35 PMReplyLike1
theomeo
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No doubt Cen has gone over and above to provide a diversified company i.e. hemp, mj, and research. Also we are strengthening our fundamentals by having an audit, up lists and merger. Remember RXNB gives us in roads the US. But they are being cautious even if all of the above comes true with out quality assurance we have a problem like other MJ's are the product being bad which could really hurt the company. However, I do believe we have a winner here there is no doubt in my mind.
16 Sep, 04:53 PMReplyLike2
Smart guy 1
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Thank You for another excellent article. This should help to reassure newer investors of just how solid this company is. After watching it since January, I know that my investment is in the right place.
16 Sep, 04:56 PMReplyLike1
rise51
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Author’s reply » I agree with you Smart guy. This is by far the best and least risky investment I have yet to find.
16 Sep, 05:42 PMReplyLike1
nase8
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Lets just hope the license is announced at the open house or we could see a big dropping out in confidence.
16 Sep, 05:48 PMReplyLike3
rise51
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Author’s reply » Folks, please keep posts relevant to constructive commentary rather than bashing the author or the ideas here.
Thank you
16 Sep, 06:11 PMReplyLike1
nase8
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That was neither bashing your or your ideas...the timeline has been pushed out so far this seems like it HAS to be the time to announce the license. Going to be a big let down to many if it is not, and the pps will reflect it.
17 Sep, 09:02 AMReplyLike1
rise51
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Author’s reply » I wasn't talking about u Nash , that's why ur comment wasn't deleted. Others posts that were immature and disrespectful I removed.
Thanks for reading the article!
17 Sep, 09:34 AMReplyLike1
Mikie713
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I agree, Nase, this is the defining moment. If investors walk away from this open house with either no license in the immediate future or no clear idea when one will likely be forthcoming, there is no longer room to speculate. Or they should expect another open house in Feb. 2015 to be strung along for another six months.
17 Sep, 10:00 AMReplyLike0
rise51
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Author’s reply » no one is being "strung along" here, we are seeing the future unfold and it looks promising. Read that new article regarding HC being backlogged, regarding other companies with the same issue as CEN. Health Canada should be giving news, but no one knows when. Everything else is just background noise.
17 Sep, 11:51 AMReplyLike0
Mr. Happy Invests
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This company continues to set new standards and is a leader for all the rest to follow. Consider this the beginning of a real medical Marijuana company with Sterile facilities , trained , employees, expert board of directors, and real testing of product.
16 Sep, 11:47 PMReplyLike2
smithgh72
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I have been following Bill since January and I am an investor. This article calls out "Bashers" for making the statement that Municipal approval is needed, IT IS! If you care to read the minutes from the Town Meetings you will see that the re-zoning has been deferred. There are new by-laws that where not even on the books when Bill obtained the necessary permits to build. Also there is opposition from the residents and that is the reason for the "Q&A Open House". I am long on FITX and a Billiever so please check your DD before making remarks that you have not investigated.
19 Sep, 06:04 PMReplyLike0
smithgh72
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By the way here is my DD to confirm what I have said. http://bit.ly/YZJsfL Also HC guidance for following Municipal zoning. It is the LP’s responsibility to ensure that provincial, municipal and federal legislation including building and fire codes are complied with. Health Canada’s Office of Controlled Substances is the authority responsible for licensing and compliance monitoring under the Next link will take you to another Web site Controlled Drugs and Substances Act(CDSA) and MMPR. http://bit.ly/YZJqo5
19 Sep, 06:36 PMReplyLike1
rise51
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Author’s reply » there is no opposition from most residents actually.
and actually i have researched this before, and you are absolutely right with your DD! However, a key note here is that the municipal board of Lakeshore has already agreed with the facility to be made at the town. ALSO, per the ministry of health of Canada, they were the ones that approved the facility, and after a successful inspection (security, building, permits) CEN BIOTECH has been APPROVED for ALL THESE FACTORS.
So the real question is why is license taking so long?
It appears HC has a backlog of facilities and many other mj companies are feeling the heat. So this really is not an issue specific to CEN BIOtech, but is more of a general issue that most companies obtaining approval are experiencing.
Be PATIENT, and STAY LONG ON THIS ONE!
20 Sep, 11:33 AMReplyLike0
rise51
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Author’s reply » Also, thank you so much for actually giving constructive criticism as opposed to most bashers who just come here and call names and act in a bad taste of professionalism.
I really appreciate that.
20 Sep, 11:35 AMReplyLike0
Mikie713
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So what we're looking at here are "circumstances beyond our control" as to what is delaying things. Meanwhile, MMPR's growth/success is dependent on two catalysts: the MMAR/MMPR litigation and Canada's 2015 election (legalization). Until the outcome of these events are decided $FITX is going no where, license or no. None of this appears ANYWHERE in the articles you've written. Elephant in the room? And don't you think the "braintrust" at $FITX knows this? Both the injunction and the potential of recreational MJ becoming law in Canada are even greater hurdles than the license itself. And yet all $FITX talks about is the license. Like it's the golden ticket to Willie Wonka's Chocolate Factory. This could go on for a year, maybe two, maybe three.
20 Sep, 12:54 PMReplyLike0
Mikie713
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Were I running things at $FITX and serious about making money in this fledgling pot business right now -- I'd pull up stakes in Canada, cut my losses and run the other way. Set up shop in Oregon, which is very nearly sure to vote rec pot within weeks. And quite possibly by 2016, California will follow. That creates a market from Alaska to the Mexico border with a population of potential customers greater than the population of all of Canada.
Seriously though Bill isn't interested in that kind of logic, he's doing just fine selling his shares bit by bit and capitalizing on his investor's hopes and dreams. How much has he cashed in this year alone? Publish the number in one of your articles. The man is an opportunist at best.
This is what I mean when I say "being strung along."
Yeah, they'll get the license eventually. Everyone will say I told you so and the stock will spike to .11 etc. Bill will cash in even more ... but this business in reality is 3 to 5 years away from realizing anything. And by then either its CEO or the business itself will already be gone.
20 Sep, 01:06 PMReplyLike0
rise51
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Author’s reply » Mikie, MMPR is not an issue, it is already a law. and recreational mj laws are not relevant to CEN BIOTECH at this point. We are catering to patients who require mj use for various ailments diagnosed by physicians. what you are talking about is irrelevant and something that will be an issue in 3-4 years; in which would bring even more patients/clients into the norm.
Imagine taking a dilute assay of CBD medication catered to a specific ailment, (i.e., chronic pain, tension headache, etc), and not using the harmful side effects of pain medication (damage to liver, kidneys, vital organs).
In any regard, I appreciate your post. Finally some healthy conversation!
20 Sep, 01:10 PMReplyLike0
Mikie713
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Rise, there was and is an injunction of the new law, so the law is not yet LAW. The situation remains in flux. The citizens of Canada are protesting the weed they were able to grow on their own will skyrocket in price if they had no other recourse but to purchase weed from the likes of CEN BIOTECH (and others already licensed and growing - TWEED). Until that is settled ( and don't expect it to be for at least another 6 months) potential profitability of commercial growers is slimmed down considerably. Which means there's no point to license any new growers. Secondly, there's no guarantee the decision will go in favor of commercial growers when it does come down. Where is any of this in your assessment of $FITX going forward? If in fact the decision goes against the commercial growers (or there's some kind of median ground reached), we have a problem in Canada. Not just with $FITX, but with dozens of others and the millions they've already invested. Not that the entire industry will go belly up, but the prospects are deflated. And the markets don't react favorably to that.
20 Sep, 01:22 PMReplyLike0
rise51
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Author’s reply » Mickie, I don't agree at all. That injuction was months ago and it only allowed current growers growing in small homes to continue supplying until big companies that are regulated, with no toxic byproduct, high grade cannabis to be medically monitored and grown. Don't listen to the bashers who continue to instill dead into a sound investment strategy.
And if necessary, I will address this in the next article to alleviate all concerns investors on the fence might have.
FITX is the best company to invest in out of all the other public ones.
20 Sep, 02:25 PMReplyLike0
smithgh72
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This is an industry in its infancy, there are not even laws on the books to regulate it. That's what this is all about regulation or red tape as I call it. Once these hoops have been cleared an people become more receptive to the MMj industry we will see the positive effects. I do not bash, I do my homework and investigate. Sometimes I find things that I don't like and some times I find positive things. Cen-Bitotech is one of the most positive positions I have. So friends buy the dips and wait for this team to do what they do best....
20 Sep, 03:10 PMReplyLike1
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