The news comes hot on the heels of yesterday's letter to shareholders written by Mr Bahige Chaaban, better known to FITX shareholders as Bill. The impassioned letter stated that the business plan CEN had “two years ago” was still on the company's to-do list.
Today's news release informs that on Nov 30, 2015 FITX shareholders will receive 1 CEN Biotech share for each 700 FITX shares they held. The new entity's shares will comprise 6.9 million common and 100,000 preferred shares. CEN is “planning” to trade on the QB tier of the OTC Markets, while FITX will remain a pink sheet stock. CEN has also had a CPA perform an audit and included the statements in a SEC filing.
The most interesting question is how CEN will fare once it starts trading as a separate entity. Even though the letter to shareholders and today's PR speak of the pending litigation against Health Canada and its decision to deny FITX a license to grow medical marijuana, there is currently little clarity and specifics on the subject.
The facts of the matter is that after months and months of promises, assurances and buildout photos put up by the company, FITX shareholders who were buying the company's stock at prices as high as $0.10 per share in 2014, were served Health Canada's cold, hard denial of a license. The rest is history and quite easily observable on the company's chart.
With the upcoming share distribution, the remaining believers in Bill Chaaban's vision will have a chance to dust off their trusty “I BILLieve” t-shirts and keep their fingers crossed that FITX's claims that Health Canada denied them the license in an “arbitrary” manner hold up well in court.