On September 26th, 2023, the Canadian Securities Exchange witnessed the listing of a pivotal player in the evolving landscape of drug safety and investment: Safe Supply Streaming Co. (SPLY:CSE), or simply Safe Supply. But, why should this matter to the average investor or citizen? The reason is twofold: global drug safety and a promising investment opportunity.
Diving into the overwhelming figures, the World Health Organization[1] has illuminated a disheartening scenario. Drug overdoses claimed over 600,000 lives in 2019 alone. Moreover, with nearly 296 million people trying drugs at least once in 2021 and a thriving global drug trade valued at a mammoth $360 billion USD annually, the issue at hand is of colossal proportions.
Grasping the magnitude of the global drug crisis, numerous countries have re-evaluated their approach to drug criminalization. The pitfalls of blanket prohibition have become clear, prompting over 25 nations, led by countries such as Portugal, Netherlands, Czech Republic, and Germany, to shift towards decriminalization. Far from a simple act of leniency, this strategic move is a considered response. Notably in North America, regions like British Columbia in Canada and Oregon in the U.S. have embraced this evolving stance, emphasizing the provision of safe, verified, and tested substances for users. The overarching aim is multi-pronged: to minimize harm, dismantle the illicit drug trade, and cultivate an educated community of drug consumers. Portugal stands out in this effort, having decriminalized drugs in 2001. Two decades later, the results are commendable; drug-related deaths and drug usage rates in Portugal remain consistently below the EU average[2].
Safe Supply’s entry into this sector is both thoughtful and methodical. Their management team, comprised of individuals with diverse backgrounds in the industry, brings together the insights of thirteen professionals serving in various capacities, from executives to advisors. The team includes notable names such as Bill Panagiotakapoulos, previously with Beleave and Rekemend; Setti Coserella of TAAT; and Ronan Levy from Field Trip. With their combined expertise, they guide Safe Supply’s mission, focusing on the overarching goal of enhancing drug safety standards on a global scale.
So, what does this paradigm shift entail? At the core of Safe Supply’s strategy is a distinctive proposition for investors. Investing in Safe Supply stock means investors are not just buying into a single company but a handpicked collection of portfolio companies. Each of these is strategically placed to leverage both the current landscape and anticipated changes in global drug policies. Safe Supply’s mission goes beyond just legality; it champions a holistic commitment to drug safety. A prime exemplar of this dedication is CannaLabs, a prominent entity in Safe Supply’s portfolio. Focusing on stringent testing and analytics in Canada, CannaLabs underscores Safe Supply’s primary objective: to not only navigate decriminalization but also to guarantee genuine safety for drug consumers. Another key portfolio entity is Safe Supply Licensing Co., currently in the advanced stages of obtaining a dealer’s license under the CDSA. This license will enable them to import and test controlled substances, linking investee companies to federal licenses for Schedule 1-3 compounds. The company anticipates capitalizing on numerous other opportunities in the coming six to twelve months.
Regarding the financing details, as part of a prior agreement, 5,965,000 subscription receipts of Safe Supply, which were raised through a private placement totaling $2,386,000 in proceeds, were seamlessly converted into an equal number of Shares at no extra cost. For every common share of Safe Supply held, Safe Supply shareholders received one Share. Now, after finalizing this transaction, the Company boasts a total of 70,217,750 Shares. Diving deeper into the ownership structure, shareholders of Origin Therapeutics Inc., following a 4:1 share consolidation, possess 14,140,750 of these Shares. Meanwhile, former Safe Supply shareholders, including those from the recent private placement, hold 56,077,000 Shares. Moreover, there’s potential for the number of Shares to grow: 375,000 Shares could be issued if stock options get exercised, and another 434,750 Shares might come into play if brokers or agents decide to use their compensation options or warrants linked to the recent financing.
To summarize, while Safe Supply’s listing on the Canadian Securities Exchange may seem like another day in the financial markets, its implications are far-reaching. Here’s a company addressing a global crisis, both in terms of health and the associated illicit trade, head-on. For potential investors, Safe Supply is more than just stocks and dividends. It’s a chance to be part of a larger narrative, a movement toward a safer, more informed world concerning drug consumption.
Safe Supply Streaming Co. Ltd. begins trading on the Canadian Securities Exchange today, October 3, 2023, under the trading symbol “SPLY.”
[1] https://www.who.int/news-room/fact-sheets/detail/opioid-overdose
[2] https://transformdrugs.org/blog/drug-decriminalisation-in-portugal-setting-the-record-straight
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* In accordance with an executed agreement between The Dales Report and Safe Supply Streaming, The Dales Report is engaged with the aforementioned on a 4-month contract for $9,000 per Month + 20,000 shares in the company, with the purpose of publicly disseminating information pertaining to Safe Supply Streaming via The Dales Report’s media assets, encompassing its website, diverse social media platforms, and YouTube channel. Compensation for The Dales Report services involves the receipt of a predefined monetary consideration, which may, on certain occasions, encompass ordinary shares in instances where monetary compensation was not obtained. In such instances where share compensation was received, The Dales Report hereby asserts the right to engage in the acquisition or disposition of such shares subsequent to the conclusion of the aforementioned contractual period, in compliance with provincial, state, and federal securities regulations. Please refer to the “Disclosures” section below, which is to be interpreted in conjunction with this disclaimer.
