Demand for cannabidiol (CBD) is on the rise, thanks to the increasing number of people who recognize its many benefits. CBD is a non-psychoactive chemical component of cannabis, which means that, unlike tetrahydrocannabinol (THC), it delivers therapeutic effects without getting users high.
And because of the current high demand for CBD and great market potential, many companies are striving to provide people with good-quality and all-natural CBD products.
Tree of Knowledge is one of these companies.
Tree of Knowledge (CSE: TOKI) is focused on the production and the sale of products with high CBD content through its subsidiary, EVR Brands.
EVR Brands produces CBD products that are organic, vegan, gluten-free, and are formulated with other natural ingredients. EVR’s substantial product portfolio includes capsules, pens, tinctures, balms, and many others.
EVR Brands boasts using propriety cutting-edge and state-of-the-art equipment in their production facility. All their products are tested by a third-party testing laboratory, and their packaging carries a QR code that allows consumers to check the lab results for the product batch, as well as take a look at the Certificate of Analysis (CoA). It is the CoA that shows the purity of the CBD and provides a guarantee that the product is free of pesticides, heavy metals, microbials, and other contaminants.
EVR is focusing on the global CBD market, as well as on emerging markets in Europe, Asia, and North and South America.
EVR is trying to enter the European CBD market via Ireland. They already have an operational distribution facility in the Irish capital of Dublin. In Ireland alone, they expect to generate $1 million in revenue for 2018. If they can expand into new markets in Europe, this part of the business can prove to be significant.
In Asia, EVR already has a presence in China and they are expecting to generate $1.5 million in revenue in the country for 2018. They also created Gout Crème especially for a distribution partner in the Chinese market and, in January, delivered the first batch of these products. By the third quarter of this year, they expect to start distributing 50,000 units of Gout Crème a month. They will also be monitoring this division for future growth.
In the United States, EVR has partnered with several big distribution groups that already began driving revenues and gaining market share. EVR is also targeting Canada, which offers access to the largest indoor grow in the world, as well as a distribution network, and a world-class teaching and research and development (R&D) facility.
EVR is bullish on the U.S. and Canadian markets because of their size and their great growth potential.
As for South America, EVR is one of the 11 approved medical cannabis suppliers to doctors in Brazil. Their CBD product line is also the most well-known and most requested, according to physicians who prescribe it. EVR expects to generate around $725,000 in revenue for 2018 in Brazil.
The market in Argentina is similar to Brazil’s in terms of how CBD products are approved and prescribed. EVR is one of only two medical cannabis suppliers approved by the government. They are expecting to generate around $200,000 in revenue in Argentina for 2018.
Tree of Knowledge is working with FUJI Water to develop Hydrogen and CBD infused water and to exclusively market this product throughout North America, Australia, and Europe. The product will be produced out of their location in Scarborough in Ontario, Canada.
The company is also currently developing a sleep product, which will be an all-natural alternative to their existing products from their facility in Macedonia. Their Macedonia location is a fully licensed, GMP, ISO-9001 Certified, Import-Export facility that allows for all CBD and cannabis products. This facility also allows Tree of Knowledge access to the European market.
Tree of Knowledge got public on the Canadian Stock exchange earlier this month. These products are among the new products that the company will introduce after its IPO.
Tree of Knowledge expects to record strong revenue growth. For 2018 and 2019, they are projecting $5.3 and $28 million in revenues, respectively. And for 2020, they expect to generate revenues of $49 million. If their team can execute on their plan and generate the projected revenues, they are positive that they could cement the company as a leading player in the global CBD market.
EVR and NYSK
NYSK Holdings sold 5% of the company to EVR as they expect to collaborate the distribution and the R&D of new products, which will also include NYSK’s own THC products.
NYSK is a pharmaceutical company that implements advanced technology and well-established scientific methods in the development of effective, safe, and targeted cannabis products. NYSK operates from a GMP certified facility in Macedonia.
NYSK’s mission is to offer affordable yet high-quality cannabis-based medication to patients.