Creative Edge Nutrition, Inc. (OTCMKTS:FITX) Stabilizes On News
On Friday, Creative Edge Nutrition, Inc. (OTCMKTS:FITX) managed to halt its descent by pumping out another piece of irrelevant seeming PR. Although the news appears to have no real bearing on FITX’s present situation, it did manage to stabilize the ticker for a session.
The announcement of FITX’s joint venture with RXNB Inc. for marijuana liabilities insurance for North America didn’t seem like something to write home about, despite the use of overly optimistic and boastful language.
At its core, the joint venture was announced as “focusing on the offering of medicinal marijuana insurance for licensed producers, dispensaries, grow facilities and even the medicinal marijuana prescriber”. FITX and RXNB declared, that under the terms of this agreement both companies will offer medicinal marijuana coverage for the growing and harvesting of cannabis, extracts, the facility, the landlord, the dispensary and the medicinal prescriber. Unfortunately for investors, no filing was made on the matter, so there’s no real way to know what the agreement actually contained, or if it did happen at all.
Admittedly, providing insurance coverage services to fledgeling companies does not appear to be a bad idea. However, the news can’t help but sound ridiculous, originating from FITX as it did. First off – presently, FITX doesn’t even qualify as a company fit to use the very services it will be providing under the terms of the agreement. It is neither a “licensed producer”, nor does it own any “dispensaries” or “grow facilities”.
It’s not like FITX has anything else that it could impress potential clients with, either. The company’s management appears dubious to say at best, its achievements so far look negligible. All the company has presently are empty promises, misleading PR, lots of patience, and the hope that Health Canada will approve it for a growing license, so that it can get down to business. Which is something that may or may not happen for some time yet, or at all for that matter.
In light of this state of developments, the “insurance” partnership can be viewed as a safety net of a sort. It is FITX’s insurance that it will remain in the marijuana sector, even if it does not get the much anticipated growing license.
Overall, the news may have done the ticker good for a short while, as all marijuana PR does, but only time will tell if FITX would be able to rise on it for much longer. Investor enthusiasm about the news seems to have dissipated by the end of Friday’s session, so unless something new and exciting happens, the ticker will most likely resume its previous direction today.
Another popular OTC Markets marijuana stock that is currently struggling with the market after a sharp descent, is Terra Tech Corp. (OTCMKTS:TRTC). Its situation is, in many ways, not dissimilar to that of FITX – both companies are among the most heavily traded grower-oriented pot-stocks, despite not even having licenses to grow marijuana.