Creative Edge Nutrition Inc. (OTCMKTS:FITX) On Its Way Down Again
On Monday Creative Edge Nutrition Inc. (OTCMKTS:FITX) jumped all the way to $0.0929 on the news of its most recent acquisition. By now the hype the press release caused is gone, and as a result the company has started another one of its headlong tumbles to the bottom of the charts.
FITX‘s buy of 51% of Hemp Technologies Ltd. was the big news at the time it hit the wire. Mr. Bill Chaaban, FITX‘s CEO, declared that HempTech’s operations in New Zealand, Canada and the United States would be a tremendous asset which would be employed in FITX‘s expansion.
The market was roiled for a time, but ultimately investors weren’t impressed for long. As a result the ticker plummeted 7.68% yesterday. This just goes to show how hopeful optimism and well-wishing can only push the ticker up for so long, before the tactic of self-promotion through press releases loses its efficiency.
It is safe to assume that the fall is mainly due to the fact that the numbers aren’t in FITX‘s favour, regardless of Mr. Chaaban’s enthusiasm for his own business venture. The company’s latest quarterly report showed the following:
- Cash – $19 thousand
- Total Current Assets – $0.8 million
- Total Current Liabilities – $4.6 million
- Quarterly Revenues – $303 thousand
- Quarterly gross profit from revenues – $131 thousand
- Quarterly Net Loss – $1.4 million
With numbers such as these, it’s no wonder that the hype around FITX‘s announcements lasts only about a day, after which point the company starts crashing down again.
Another marijuana company that fared poorly yesterday is Growlife Inc. (OTCBB:PHOT), who fell 11.98% during that session.