Discovery Minerals LTD (DSCR)

[Ryan8]

FITX and DSCR the Genesis Link

Source: https://www.theglobeandmail.com/report-on-business/how-much-does-ottawa-know-about-the-medical-marijuana-companies-its-licensing/article22008885/


When your business model is printing shares and selling them using FOMO and inflated press releases. A trail is created and patterns emerge. Those patterns are what prosecutors use to educate the jury of the criminality that has occurred.

This is where artificial intelligence kicks and, and spits out the line of convergence. From that, an analyst looks at it, tags it, and teaches our machine learning AI what to look for because of this.

Pretty amazing tech and really fascinating to see, if your a crook your going to hate it, because everyday it gets smarter and the lines get thicker and brighter.

Meaning stock promoters, dark money pools and morally bankrupt CEO's are every day getting closer to meeting the light of justice.

Here is what our AI is blinking about, so anyone see the connection, stay tuned by tomorrow I am sure a few more exhibits will emerge.

How much does Ottawa know about the medical marijuana companies it's licensing?
GRANT ROBERTSON
PUBLISHED DECEMBER 19, 2014
This article was published more than 7 years ago. Some information may no longer be current.


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Meet CEN Biotech, the company that wants to become the $5-billion king of Canada's new medical marijuana industry. But there are serious questions about its conduct in the capital markets, raising concerns about the federal government's oversight of the sector.

On June 30, in a packed conference room in Denver, Bill Chaaban – a man known to his legions of followers as “Wild Bill” – took the stage to a rousing ovation. The room was filled with investors hungry for the stock market’s next big thing. And Mr. Chaaban knew how to play to a crowd.

According to the emcee who introduced him, Mr. Chaaban was “probably the most talked-about CEO in the space,” which in this case was the new medical marijuana industry rapidly coming into being across North America.

Part 1

The pot stock bubble: Inside the rush to profit from medical marijuana

It is a multibillion-dollar business being created from scratch – the product of historic government reforms happening in a number of jurisdictions, particularly in Canada. In fact, the subject of Mr. Chaaban’s talk was his plan to dominate the new Canadian market for medical marijuana, which Ottawa had opened in April.

To those attending the first annual “Weedstock” – a conference that had sold itself as a conduit for investors to connect with “the titans that drive this fast-paced industry” – Mr. Chaaban seemed to be letting them in on something remarkable.

“There’s some things that I’m going to reveal that haven’t been made public yet,” he said, tempting the audience with the prospect of inside information. “We’ll let you speculate from there.”

Far from the scrutiny of the Canadian government – the kingmaker deciding which companies receive a highly coveted licence to grow and sell medical marijuana – Mr. Chaaban proceeded to talk up his plan.

His Michigan-based company, Creative Edge Nutrition, had a Canadian subsidiary called CEN Biotech that was constructing a facility in Southern Ontario big enough to produce 600,000 kilograms of medical marijuana a year. Not only would it be the largest legal grow operation in Canada, but this plant in the town of Lakeshore, just east of Windsor across the border from Detroit, would be the biggest of its kind in the world – bigger than all the other Canadian companies combined. CEN Biotech was going to rule this new industry.

Mr. Chaaban, a lawyer from the Detroit area, said he’d spoken with Health Canada only a few weeks earlier and was going to “partner with them.” He also told the room of investors that his company had “essentially” been approved by Ottawa.

It was a tantalizing story. Because, as Mr. Chaaban said, this wasn’t just about medical marijuana. The way he saw it, Ottawa’s medical marijuana legislation was basically the end of prohibition on the drug.

“Effectively it’s de facto legalization. All you need is a script from a doctor. You don’t have to prove why you need it – all you need is a prescription to get it,” he said. “I see the market being 500,000 patients in two years, and being billions of dollars.”

Energized by his story, investors gave Mr. Chaaban a standing ovation. In the weeks that followed, shares of the parent company, Creative Edge – a penny stock traded on the loosely regulated over-the-counter (OTC) market in the United States – rose quickly.

But what the investors in Denver didn’t know was that Mr. Chaaban had made several claims that weren’t true. Health Canada does not form “partnerships” with private-sector companies. Nor had CEN Biotech “essentially” been approved by Ottawa to begin selling medical marijuana in Canada.

What they also didn’t know was that while Mr. Chaaban was touting his company to them, he was simultaneously selling off his own shares in huge numbers and pocketing millions of dollars in the process.

Video: In a booming industry, medical marijuana company makes problematic claims
Brightcove player

When Health Canada set out to design a market – under orders from the Supreme Court – that would allow medical marijuana to be prescribed to patients who need it, the impact on the capital markets was not on its mind, according to thousands of pages of federal documents detailing the process, which were reviewed by The Globe and Mail.

But in forming this lucrative new industry, Ottawa has unwittingly left the door open for stock promoters to spin tales of vast opportunity, and enrich themselves on the backs of unsuspecting investors. And Ottawa appears to have no answer for how to stop it.

A Globe and Mail investigation has found that while Health Canada performs background checks on those who want to operate medical marijuana companies, the department has not looked into how these same companies conduct themselves in the capital markets, or what they are telling investors.

When asked about CEN Biotech’s conduct, Health Canada refused questions, saying it could not comment.

But Mr. Chaaban has continued unabated. As he concluded his remarks in Denver, he couldn’t help but entice investors further. “Stay tuned,” he said. “We just started.”

Selling a story
Before he set his sights on dominating Canada’s nascent marijuana sector, Mr. Chaaban’s primary business was Creative Edge Nutrition, a company on the outskirts of Detroit that made nutritional supplements and energy drinks.

Mr. Chaaban told investors in the U.S. that Creative Edge Nutrition ships around the world and is a major player north of the border, “supplying every major nutrition store in Canada.” The Globe and Mail has been unable to verify this claim. Staff at three of the country’s largest retail chains – GNC, Popeye’s Supplements, and Nutrition House – said they had never heard of the brand. When asked for a list of Canadian stores that sell Creative Edge products, Mr. Chaaban and his spokesman did not respond.

The focus shifted to medical marijuana on Sept. 5, 2013, when Mr. Chaaban announced the creation of a subsidiary, CEN Biotech.