Marijuana - Companies & Stocks

[OhManIDied]

FITX: deleted post is worth reading.
The following post was deleted by MissyL as Off Topic on the FITX board. I am glad that I found it. I will share it here... the poster Mr_Roboto shared something AB wrote about FITX:

As a 420 investor, I'd like to share AB's comments today regarding FITX:

I believe this will shed some light into Bill C and FITX. I really respect AB and his opinion on this matter. His comments today have solidified my long position in FITX. Please read:

"I just spoke to Bill Chaaban of FITX, which is always a great experience. We covered a lot, but I will share the main points:

First, the FINRA thing is VERY REAL. He played a message for me and explained the situation. If you are invested in MJNA, MDBX or HEMP, I seriously suggest that you consider what Bill has shared. He told me that they are examining press releases for false statements. I would also be very careful with these new names suddenly entering the space. Historically, I would post this to the message boards to warn others, but I will refrain until Tuesday. I think that we could see a lot of pressure in potentially suspect names. I am also reaching out to others in the sector over the weekend to further corroborate what Bill has told me and posted on Facebook.

Second, he argued (very well) that his own comments and even a press release are actually above the potential amended 8-K. He is considering sending me the articles of incorporation so that I can see for myself that he is telling the truth about the nature of the ownership. I have reached out to Growlife to understand the 8-K issue better.

Third, we talked about Randy Hamdan. He said that FINRA has no issue with him and that just because someone has been sued doesn't mean he didn't anything wrong. I can relate to that personally! Also, he said that if the circumstances were to change, then he would act accordingly.

Finally, we talked about the up-listing process, and he expects to complete his two-year audits by April and to then become an SEC-filer.

For what it's worth, I really like Bill. I have spoken to many CEOs in the sector (and outside over the past decade). While maybe my own BS-detector is not working, I have to say that I think he is being truthful with me. That doesn't mean that every claim he makes is actually true, but I think he is being honest. I understand both sides here - he is quite unconventional. I am not drinking the kool-aid, but I do think CEN Biotech is very real"

Here is a followup post by the same user:

Also, for those of you familiar with AB, you know he is very conservative with his price targets. I found his comments this morning particularly intriguing:

"I am continuing to get a lot of questions about FITX and its ownership of CEN Biotech, and I wanted to make sure that everyone understands the issues.

First, the actual ownership of the facility isn't clear. The PHOT 8-K filed over a week ago said literally that FITX will own only 10%, with the balance split between 25% OGI (the PHOT JV with CANX), 25% AJOA (an LLC controlled by Bill Chaaban), 25% Wise Phoenix (an LLC controlled by Dr. Sam Alawieh and his brother) and 15% certain named individuals. This can all be referenced in the 8-K as I described when it came out.

http://www.sec.gov/Archives/edgar/data/1161582/000107997414000073/growlife8k1302014.htm

Please refer to exhibit 10.2 as well:

http://www.sec.gov/Archives/edgar/data/1161582/000107997414000073/ex10_2.htm

The issue is that it appears FTIX shareholders were only given a limited exposure, but Bill Chaaban has stated that the reality is that the structure wasn't explained fully. Each of the individuals and the individuals, according to him, will hold the ownership in trust. Unfortunately, this hasn't been shown to be the case, though it very well could be.

Chaaban told us that PHOT will be amending the 8-K, but PHOT hasn't done so yet. This would certainly clarify the issue, but the timing is out of Chaaban's control. If PHOT doesn't amend the filing, Chaaban needs to get the information to shareholders, or conservative investors will take view the ownership as 10% rather than 75%.

A second issue is that many believe his claims are exaggerated. I have received questions about whether the project is even real, and I don't think that is the issue. But, it's not yet clear that the 10.3 acres can ultimately produce the 1.3mm lbs. of cannabis product that Chaaban claims. I think Bill has answered a lot of questions, but, still, some remain. I am not in a position to judge based on the information I have (mainly, can Dr. Sam achieve 4 lbs. per plant in a 35-day grow cycle), but I would say that even if they are exaggerated (and I think unintentionally, if so) that the project is still massive.

I have heard from several other pending producers or already-licensed producers in Canada, and they have uniformly dismissed his claims. With that said, none of them has been willing to publicly state why or even to privately convey to me their rationale. I don't believe that their views are fully informed, but this is what Bill Chaaban faces (lots of skepticism). Remember, until I spent 3 1/2 hours with him on the phone, I was skeptical too, though I would put more weight on their views given their greater knowledge as insiders. Counter that, though, with the due diligence done by the Growlife and CANX teams.

So, it's not surprising that the stock,which did rally nicely last week by the way, hasn't fully reflected the potential. If Bill Chaaban and his team execute and can achieve even 33% of their 1.3mm lb. production goal and if FITX truly owns 75% of the CEN Biotech project, I would expect that the stock can more than double over the next year based on 3.5 billion shares outstanding, which Chaaban says will not increase. I will go so far as to say that hitting 1/2 of their goal in three years would lead to a valuation in excess of $1 per share (and this includes the $100mm payment to OGI as well as all of the revenue sharing I project). The opportunity is massive, and owning 75% of it would be phenomenal. Owning only 10% wouldn't be so bad either."


I believe as AB appears to believe that FITX owns 75% and the $1 share price is definitely within the short term future. I will continue to believe UNTIL I find out otherwise!

EDXC + FITX