|CEN Biotech has been under the spotlight for months after completing construction of a multimillion-dollar facility at the intersection of Manning and North Rear roads to produce marijuana. CEN Biotech has not been granted a licence from Health Canada to produce medical marijuana and it remains one of more than 1,000 applicants across the country.|
U.S. security regulators are involved in looking at CEN Biotech’s parent company Creative Edge, the Globe and Mail has reported. The company is a penny stock traded on the over-the-counter market in the U.S.
|The Globe and Mail first published information about former FITX CEO Mr. Bahige Chaaban, better known to investors as Bill, selling shares worth multiple millions of dollars into the hands of hopeful investors whose expectations were buoyed by grand pronouncements made by the company, including plans to grow over 1 million pounds of medical marijuana and make $5 billion per year from it. Obviously, this is not what happened in 2014.|
It turns out one of the latest PR pieces put up by the company in the form of an interview with a certain Mr. Isak Weber is also problematic, as Mr. Weber simply does not exist. The Globe and Mail reported that last spring Chaaban “was touting the stock to investors using false claims involving Health Canada” and then “quietly selling 71 million shares and pocketing more than $4.6 million in proceeds” of his company’s stock.
|Amid serious questions about the company’s conduct, including allegations of misrepresentation and false claims by the CEO, Health Canada informed CEN Biotech in a letter late Friday that the government intends to refuse its application for a licence.|