Creative Edge Nutrition Inc (FITX)

[scion]

Another Marijuana Stock
That Could Give Its Shareholders FITX

Written by Janice Shell
http://www.pumpsanddumps.com/



May 23, 2014: On 20 May 2014, John Germinario, chairman of the board of Creative Edge Nutrition, Inc. (FITX) and Cen Biotech, a partially owned subsidiary of FITX, posted an extraordinary letter on the company's Facebook page. The subject line read "The Decimation of an Industry." The letter was addressed to SEC attorneys Elisha Franke, Co-Chair of the Microcap Task Force, and Lori Schock, Director of the Office of Investor Education and Advocacy, and was copied to Mary Jo White and the other four commissioners.

Germinario joined FITX and Cen Biotech a little more than a month ago. The appointment seems to be his first venture into the increasingly crowded marijuana space. His day job is as CEO of a company called Global Securities Services Corporation, which appears to have been created to save the world from unregulated and perhaps fraudulent American Depositary Receipts (ADRs). The site's homepage warns that "Depositary Receipts Are Toxic and Have Poisoned Global Investor Portfolio's [sic] for Decades!"

On a page dedicated to himself, Germinario explains that he's considered to be "one of the world's most knowledgeable experts on International Capital Markets and Depositary Receipts." He once developed ADR programs, but now seems to work as a consultant. He's occasionally quoted in the financial press, usually explaining his concerns about unsponsored ADRs, which have become increasingly popular in recent years. Perhaps ironically, they trade on the U.S. Grey Market or as Pinks.

The letter

Germinario's missive to the SEC is not quite what one would expect of someone who's spent decades dealing with relatively boring ADRs. He begins by announcing that he wishes to express his disagreement with the agency's recent treatment of stocks in the pot sector.

I and my team of Whistleblowers are overwhelming appalled with the Commissions shot gun approach of decimating the capitalizations of legitimate shareholder values of company's by a submission of a broad based investor alert by the commission. It has resonating effects on the entire industry which include companies that are not involved in the investigations. The commissions approach to suspend trading activity in companies that are perceived, targeted or evidenced by criminal activity should not be suspended which destroys the investment of legitimate shareholders but to aggressively hold these perpetrator(s) accountable and prosecute those individuals to the full extent of the law.

The investor alert of which he speaks isn't as appalling as Germinario claims. It is, in fact, one of several similar alerts released by the SEC and by FINRA since the summer of 2013. Their intention is to warn retail market participants of possible fraud in a new industry populated by companies that have sprung up overnight, or abruptly changed their business plans to accommodate the public's sudden enthusiasm for anything weed-related. The alert offers familiar information about what should be considered red flags, but there's something new, and that is what seems to have ticked off Germinario. The first topic of discussion is the recent trading suspensions imposed by the SEC on five penny companies in the pot sector: Petrotech Oil and Gas, Inc. (PTOG); Advanced Cannabis Solutions, Inc. (CANN); GrowLife, Inc. (PHOT), and FusionPharm, Inc. (FSPM). The SEC itself apparently forgot about two others: Aventura Equities, Inc. (AVEN) and Citadel EFT (CDFT), which had at least expressed an intention of getting into the marijuana business. Add to that list Fortitude Group (FRTD), which was suspended just this morning.


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