Tree of Knowledge International Corp (CNSX:TOKI) has started taking off, after a long period of subdued activity in the market. A 50% plus spike, from all-time lows, on the back of high turnover of traded shares, could as well signal a change in direction for the stock.
Share Price Analysis
The stock is trying to bounce back after losing more than 70% in total market value in 2018. A plunge to the CA$0.17 level marked one of the worst routs, arousing concerns about the company’s ability to continue operating as a going concern.
Renewed investor interest in recent weeks has helped fuel a bull run that has helped the stock bottom out from one-year lows. The recent Bull Run follows the announcement that the company has entered into a strategic partnership for the opening of the first expanded Jack Nathan Health Multi-disciplinary clinic in Ontario.
The stock’s sentiments have also inched higher following the confirmation of a $350,000 financing for the company’s innovative enhanced delivery technology. Tree Of Knowledge International Corp expansion drive is also gaining traction, the company has set toes on U.K’s million-pound CBD market.
Investors have continued to push the stock up the chart in response to recent developments that affirm the company’s growth metrics. A spike in trading activity means the stock is staring at the CA$0.50 mark, the immediate resistance level on further upside action.
A rally followed by a close above the CA$0.50 would reaffirm the emerging uptrend, setting the stage for the stock to make a run for 52-week highs. Below the crucial resistance level, the stock remains susceptible to further drops.
What Does Tree Of Knowledge International Corp Do?
Tree Of Knowledge International Corp is a hemp-focused company that produces and sells hemp-based cannabidiol products around the world. The company also distributes EVR premium, hemp oilseed for the treatment of various ailments and for other general wellness purposes.
Why is Tree Of Knowledge International Corp Bottoming Out?
Tree Of Knowledge International Corp bounce back has received a boost on the company inking a strategic partnership, set to strengthen its medical cannabis business. The company has entered into an agreement with Pancare Consulting Inc. and Onsite Medical Group, for the operation of a multi-specialty pain, management facility within the Jack Nathan Health Medical Center.
The new facility will provide an array of medical cannabis treatments in addition to other medical pain management solutions.
“This Strategic Alliance is built on high-quality patient care designed to align the parties’ interests and care goals and facilitate a rapid launch and expansion to future locations. Management believes the combined strength in a platform of TPC-PCC-Onsite Medical, as part of Jack Nathan Health® Medical Centers in these high traffic convenient store locations, will enable management to capitalize on one of the largest resources,” Tree Of Knowledge International Corp in a statement.
Ryerson University Partnership
Tree Of Knowledge International Corp has also received a boost on the signing of a Sponsored research agreement with Ryerson University. The two are to conduct research on the company’s innovative ultrasound technology. The research will also focus on nanotechnology, delivery methods, with the aim of enhancing the efficacy of medical cannabis and cannabidiol derived therapeutics.
A key component of the agreement involves conducting large-scale studies and clinical trials on various cannabinoids. Tree Of Knowledge International Corp has committed $350,000 into the research and development efforts.
Even as Tree Of Knowledge International Corp embarks on research and development efforts, the company is also making its presence felt in the U.K’s multimillion CBD market. In the U.K, the company has inked a strategic partnership for the distribution of its products under the CBD&CBN’s band. The distributor has already tabled a $50,000 initial purchase order
“Their combined professional track record and wealth of knowledge has laid a foundation for Tree of Knowledge’s aggressive strategy to create a dominant presence in the rapidly evolving CBD sector in the European Marketplace,” said CEO Jean-Paul Gaillard.
After experiencing sharp swings that saw it plummet to one-year lows, Tree of Knowledge stock has started showing signs of bottoming out. A string of positive developments in the form of strategic partnerships all but affirms underlying business development in pursuit of growth opportunities.
Expansion into the U.K is another development that continues to strengthen investor confidence in the stock. That said the stock looks set to continue bottoming out in line with the overall industry bullishness as well as the improving fundamentals.
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Disclosure: We have no position in CNSX:TOKI and have not been compensated for this article.