Pubdate: Thu, 06 Feb 2014
Source: Detroit Free Press (MI)
Copyright: 2014 Detroit Free Press
Contact: http://www.freep.com/article/99999999/opinion04/50926009
Website: http://www.freep.com/
Details: http://www.mapinc.org/media/125
Author: Frank Witsil, Detroit Free Press Business Writer
Bookmark: http://www.mapinc.org/mmjcn.htm

MADISON HEIGHTS FIRM EYES CANADIAN CANNABIS COMMERCE

Creative Edge Nutrition, a Madison Heights company, plans to add a
medicinal product to its lineup that its executives expect will grow
sales more than anything that it has ever sold to customers before:
pharmaceutical-grade cannabis.

The company said it aims to become the first U.S. company to be
approved to distribute medical marijuana in Canada, where the drug is
regulated.

"Marijuana is a huge opportunity," CEO Bill Chaaban said. "It will
dwarf anything in the supplement industry."

Chaaban, an attorney, outlined the company's strategy:

Right now, he said, the company generates about $3.8 million in annual
sales by making and selling nutritional supplements, such as vitamins
and diet pills. But, he added, by selling medical marijuana in Canada,
the company could boost sales to more than $100 million in just a year.

The company, through its subsidiary CEN Biotech, is setting up
operations in Canada -- a $16-million, 85,000-square-foot indoor
facility in Lakeshore, Ontario, outside Windsor -- to produce and sell
1.3 million pounds of marijuana a year.

Last week, the company entered into an agreement with GrowLife, a
California-based company that supplies growing equipment. The deal
includes an exchange of 25% equity in the company, in exchange for
growing equipment and financing.

Once the facility is built, Chaaban said, it will require approval by
the Canadian government.

Matthew Abel, executive director of the Michigan chapter of the
National Organization for the Reform of Marijuana Laws, said while
public demand for the drug seems to be increasing, there are still
still a number of tall legislative hurdles that need to be overcome
before pot is legal.

Chaaban said cannabis, which is used to ease pain from a variety of
ailments, likely has even more medical applications.

In addition, the company also could begin to export the drug to other
countries where it is legal, such as Israel and the
Netherlands.

The company also is betting that the U.S. government also will
eventually legalize the drug so it can be brought across the Canadian
border.

Chaaban said the public demand for the drug is so great that he
expects more states to follow Michigan, Colorado and Washington and
relax laws restricting marijuana use.

Since Michigan passed a medical marijuana act in 2008, more than
100,000 people have been certified to use the drug to treat ailments.

In Michigan, two marijuana bills have passed the House that would
allow for the manufacture and sale of marijuana-infused products, such
as brownies, and let communities regulate whether they want medical
marijuana dispensaries.

The bills -- HB 5104 and 4271 -- are stalled in the
Senate.

Ultimately, Chaaban said, public pressure likely will push the federal
government to legalize pot, and the company seeks to be ready when
that happens.

"If the U.S. market opens, the sales will be billions," he said.
"We'll have a huge presence in Michigan."

[sidebar]

CEN Biotech

The company is a subsidiary of Creative Edge Nutrition, a
publicly-traded company based in Madison Heights. The company
develops, markets and sells health supplements, including vitamins and
diet pills. The company aims to supply Canadians with
pharmaceutical-grade medical cannabis.

Headquarters: 29235 Stephenson Hwy., Madison Heights

Facility: 85,000 square feet in Lakeshore, outside Windsor

Employees: 30

Annual sales: $3.8 million
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MAP posted-by: Matt