August 23, 2018 MJ Shareholders
August 23rd, 2018
News, Top News
Toronto, Ontario (FSCwire) – Tree of Knowledge International Corp. (CSE:TOKI; OTC:TRKWF) (the “Company” or “TOK”) (formerly Courtland Capital Inc.) is pleased to announce that it entered into a binding letter agreement (the “Letter Agreement”) with a private Ontario company that holds a licence under the Controlled Drugs and Substances Act (Canada) as a licensed dealer for the purpose of analytical testing of a number of controlled substances, including terahydrocannabidiol (THC) and cannabidol (CBD) (the “Licencee”).
Pursuant to the Letter Agreement, TOK has agreed to purchase all of the issued and outstanding shares of the Licencee for an aggregate cost of $4,850,000, consisting of payment of $3,850,000 cash and the issuance of $1,000,000 in common shares, based on the average closing trading price of the TOK Shares for the ten (10) trading days on the Canadian Securities Exchange prior to the closing date of the acquisition.
The Licencee is registered to provide certifications for both Heath Canada and the United States Food & Drug Administration, and has been operating a GMP analytical quality control testing laboratory for over 15 years. Specializing in product analysis and development of analytical testing methods for the pharmaceutical, natural health, veterinary and cosmetic industries and now the cannabis industry. The new venture will be actively setting up relationships with multiple Licensed Producers from small to large in order to capture their compliance testing as well as any additional analysis that they require. As a third party laboratory, the lab will be providing the full suite of cannabis testing to meet all Health Canada compliance requirements (cannabinoid profiling, residual solvents, terpene analysis, pesticides, microbial screening, heavy metals). The lab will also be focusing on other types of analysis to support the industry in product development, research and stability testing to name a few.
Currently under the Canadian Access to Cannabis for Medical Purposes Regulations (ACMPR), Licensed producers (LPs) must conduct tests on their products, including, as applicable:
- for microbial and chemical contaminants of fresh and dried marijuana, and cannabis oil
- for disintegration of capsules or similar dosage forms of cannabis oil
- for residues of solvents in cannabis oil for content of delta-9-tetrahydrocannabinol, delta-9-tetrahydrocannabinolic acid, cannabidiol and cannabidiolic acid
Production rates for the 8 major Canadian LPs alone at full capacity are expected to produce approximately 3 million kgs of marijuana annually and the demand for compliance testing is expected to increase in order to satisfy the growth in production, as well as testing for other products as legalization expands to edibles in the future.
Michael Caridi, Chairman of the Company stated: “The acquisition of a Canadian licencee is extremely important to us and will provide the Company with a number of strategic opportunities with the development and production of its own products, as well as capturing a significant portion of the anticipated demand for cannabis testing once cannabis is legalized in Canada on October 19, 2018.”
A key party for the lab commented: “We will be positioning the lab to meet the many demands of the licensed producers here in Canada. Our years of experience in the pharmaceutical realm coupled with TOK’s experience in the cannabis and CBD industry will be invaluable as the market goes live later this fall. We are currently focused on our method development and making preparations to meet the sheer volume of testing and turn times expected by our clients.”
The Letter Agreement is subject to a number of material conditions, including TOK raising the funds to complete the transaction on or about September 1, 2018, the execution of a definitive agreement; completion of due diligence investigations to the satisfaction of TOK and standard closing conditions, including the approval of the board of directors of each company.
ABOUT TREE OF KNOWLEDGE
The Company produces and sells hemp-based cannabidiol (‘CBD”) products in certain jurisdictions in the United States, as well as in Europe, South America, Australia and China. Cannabidiol/CBD is a natural constituent of hemp which is purported to contain wellness properties. TOK’s CBD product line contains EVR Premium Hemp Oil, which is an organically grown and handled, gluten-free, vegan, non-GMO, synergistic compound that is derived from U.S. Department of Agriculture (USDA) approved industrial hemp grown in the United States. TOK currently offers several CBD products, which may be used in connection with the treatment of a number of ailments and for general wellness purposes.
For further information about TOK, please see the Company’s website at www.Evrcbd.com or contact the following:
Tree of Knowledge International Corp.
Michael Caridi, Chairman or Daniel Caridi
Tel: +1 (917) 295-1374 Assistant to the Chairman
Michael@evrcbd.com +1(203) 969-5678
Partner/Founder/Head of Compliance and Risk
Northbay Capital Partners Corp.
Suite 918-1030 West Georgia Street
Vancouver, BC V6E 2Y3
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THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Forward Looking Statements
This news release contains forward-looking statements relating to the proposed acquisition of the Licensee pursuant to the Letter Agreement, including the implied timing and conditions thereto. There is no assurance that the transaction will be completed or whether TOK will be able to realize all the expected benefits therefrom. These forward looking statements involve risks and uncertainties. Events or circumstances may cause actual results to differ materially from those anticipated as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company or the parties to the agreement. These include legal and regulatory changes, the impact of general economic, industry and market conditions; expectations regarding market demand for particular products and the dependence on new product development; the impact of product competition. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and Management of the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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