Creative Edge Nutrition Inc (FITX)

[Dr. Johnny Fever]

An excellent question, and one I can't answer definitively. As I understand it, in its deal with CEN, PHOT got exclusivity in providing the grow tech for the facility. RXNB, founded by CEO Sam Alaweih, who is also on CEN board, has a deal with CEN also to provide grow tech and licensing. As I understand it, the deal between PHOT and RXNB is for PHOT to acquire a 40% equity stake in RXNB, which makes RXNB an affiliate (or subsidiary?) of PHOT, which makes the supply of grow tech from RXNB to CEN perfectly legit with regards to the exclusivity deal between PHOT and CEN

see here http://www.prnewswire.com/news-releases/growlife-and-cen-biotech-announce-collaboration-on-the-worlds-largest-and-most-advanced-legal-cannabis-production-facility-242555781.html

"...Growlife and its affiliates will serve as CEN Biotech's supplier of legal cannabis growing equipment...")

Furthermore, CEN Biotech will have the advantage of RXNB's distribution network in the U.S., and (assuming that CEN gets a license from HC) will be able to export its (assumed) product.

However, PHOT owns a 45% stake in OGI, which owns a 25% stake in CEN, and if things go sour between RXNB and PHOT directly, it could cause damage to all three companies, particulary if litigation occurs between Alaweih's RXNB and PHOT. Considering that PHOT has to deal with Alaweih via CEN as well, since he's their VP of operations, any bad blood from one vein could leak into another. We don't need litigation, we need a license, a grow facility, and a harvest.

I don't know if I'm making any sense. I'm just trying my hand at doing some good DD, and I see the potential for sour deals and lost investment on the part of the outsiders. However, I do remain cautiously optimistic, and I have a lot of faith in PHOT. Again, their interest in CEN created my interest in CEN.