MADISON HEIGHTS, MI--(Marketwired - Nov 19, 2014) - Creative Edge Nutrition, Inc. (PINKSHEETS: FITX), a nutritional supplement company focusing on active lifestyles, today announced that its Board of Directors has approved a plan to spin off CEN Biotech Inc., its Canadian wholly-owned subsidiary, to its shareholders. The parties expect the transaction to take place in the near future.
CEN Biotech Inc. intends to be an independent, publicly-traded company, which will be audited by a registered public accounting firm and fully reporting. It will be led by Mr. Bill Chaaban as Chairman, President and Chief Executive Officer.
All current officers and directors of CEN Biotech Inc. will immediately resign from Creative Edge Nutrition, as Creative focuses its plans and operations on Nutrition under its new Chief Executive Officer, Mr. James Robinson, a noted entrepreneur in the dietary nutrition space.
The decision to spin off CEN Biotech Inc. gives each company, Creative Edge Nutrition and CEN Biotech, the ability to concentrate their respective resources and efforts in their own individual area of specialty. The markets and technologies of each area of specialty are very different. CEN Biotech Inc. will devote its efforts and resources to advance in the area of specialty pharmaceuticals, and Creative Edge Nutrition will devote its efforts and resources on nutrition products.
Upon completion of the spin-off, all shareholders of Creative Edge Nutrition, Inc. will retain their shares in Creative Edge Nutrition while additionally getting shares in CEN Biotech Inc., which will be a new publicly-traded company. The distribution of CEN Biotech Inc. shares will be on a pro rata basis to the Creative Edge Nutrition shareholders based on the number of shares of Creative Edge Nutrition shares owned by each shareholder.
"This is a unique opportunity to combine the legacy, scale and scope of a well-established business while capturing the entrepreneurial energy of a new company to better serve the needs of each." stated CEO Bill Chaaban. "By eliminating the potential conflicts that currently exist between the dynamics created by both sectors, each business will now be positioned for significant vertically integrated growth."
CEN Biotech Inc. plans include working and consulting with leading experts in the field. Chaaban continued, "After a year of discussion with key figures in capital markets, it became apparent that a standalone medical marijuana company was needed. We believe that the new format will better position both companies to capitalize on favorable industry trends, better serve their customers and enhance their growth prospects by operating independently."