Another cannabis stock is gearing up to trade publicly on the Canadian Stock Exchange (CSE). Tree of Knowledge Inc. (TOK) is the latest company to apply for a listing application on the market, following a growing list that includes headline-making companies such as MedMen(CNSX:MMEN) and The Green Organic Dutchman (TSX:TGOD.
TOK is in the final stretch of its CSE application with plans to raise $7 million in private placement capital as it goes public. Market analysts say the stock will have a strong market position, with a reportedly excellent and experienced management team and significant growth opportunities.
If the stock listing is approved, investors will have the chance to invest in an international cannabis company that has cannabidiol, or CBD oil products on three continents. The global market for CBD is ever increasing due to the promise CBD shows as a potential treatment for a variety of ailments. Numerous studies show that CBD has the potential to help everything from anxiety to pain—all without the psychoactive effects of other cannabinoids like tetrahydrocannabinol (THC). Indeed, experts project the CBD market to grow from its current $200 million valuation to more than $3 billion in the next three years—an astonishing growth rate that exemplifies one of the fastest growing subsectors in the cannabis industry today.
A group of business and medical professionals founded TOK in 2015 with the goal of building a trusted CBD product line. The company also has an advisory board with leaders from diverse sectors from medicine to professional sports. Since then, the company has expanded to three continents and has grown its brand of CBD products called EVRCBD—oils, capsules, tinctures and vape pens.
Courtland Capital and TOK announced their merger agreement in April. Courtland is in the process of forming a Nevada subsidiary company to merge with TOK, whereby TOK shareholders will receive Courtland common shares, owning approximately 88 percent of the outstanding undiluted Courtland shares. The company plans to delist from the TSX Venture Exchange and instead pursue the listing on the CSE. Courtland will change its name to TOK in the reverse merger.
Together, TOK and Courtland Capital have plans to find a Canadian Licensed Producer as a partner so they can increase their presence in the fast-growing Canadian market. Overall, the CBD market worldwide is very fragmented, with no clear standout industry leaders. TOK hopes to change that by continuing to build their international brand. Canada is emerging as the worldwide leader in the legal cannabis industry, so the TOK and Courtland Capital venture will surely further solidify them in that market. Deloitte estimates the Canadian market to surpass CAD$22 billion in the coming years.
TOK Chairman Michael Caridi explained that TOK and Courtland make a great partnership moving forward in their quest to becoming a medical cannabis industry leader. Caridi cites the sheer magnitude of the medical cannabis market, and looks forward to the “ability to mature and expand [their] reach into the markets [they] are in and plan on entering.”