NEW YORK (MainStreet) If the company that manufactures Aminoplex is approved, Creative Edge Nutrition will soon be growing and selling marijuana to the tune of $100 million in first year revenue through its Canadian facility CEN Biotech.
"My intention is to grow enough cannabis to supply Canada and build an export market," said Bill Chaaban, CEO of Creative Edge Nutrition in Madison Heights, Mich.
CEN Biotech is a subsidiary of CEN, a U.S. publicly traded company listed on the pink sheet as FITX.
"Marijuana companies are obviously taking full advantage of the spotlight they currently enjoy and investors should consider what happens when that spotlight fades and/or the company doesn't come through on their promises just like so many penny stock companies before them," said Timothy Sykes, an entrepreneur and penny stock expert in Miami.
The CEN Biotech super grow facility is located on ten acres of land in the City of Lakeshore in Ontario that Chaaban leases for $25,000 a month from a relative and where marijuana laws are less stringent than in the U.S.
"Canada will continue to liberalize their view of marijuana use," said Jim Smeeding, executive director of the National Association of Specialty Pharmacy (NASP). "Medical marijuana is already in place through Health Canada. As a result, recreational use is probably on the way."
Health Canada is the licensing entity from which CEN Biotech is seeking approval to grow and sell cannabis to Canadians and to those in the U.S. and other countries abroad, such as Israel and Uruguay.
"The cannabis we produce will be tested in labs approved by Health Canada," Chaaban told MainStreet.
Demand from the U.S. could dwarf Canadian demand by 50 million pounds of cannabis a year and while other growers produce 30,000 to 40,000 pounds of marijuana annually, Chaaban projects CEN Biotech will produce 1.3 million pounds annually.