A new company that seeks to provide a safe supply of narcotics, with an initial focus on coca leaves, has joined the Canadian Securities Exchange. Safe Supply Streaming Co. Ltd. (CSE: SPLY) began trading this week on the CSE under the trading symbol SPLY.
Safe Supply will be investing in and incubating companies at the forefront of the third wave of drug policy reform. The company said in its filing that it plans to participate in the supply chain to provide a safe supply of narcotics, from securing supply through to importation of coca leaves, through processing, product manufacturing, and distribution.
“The burgeoning safe supply ecosystem is more than just a business; it’s a movement,” CEO Bill Panagiotakopoulos said. “A global shift is underway where governments, policymakers, and societies are making the decision to accept and embrace all drugs, whether through de-scheduling, re-scheduling, or legalization, because existing policies simply haven’t worked.
“Our strategic positioning and our experienced leadership team, backed by a robust financial foothold, positions us to move quickly on initiatives that will have impact and build a promising future that is not only profitable but also sustainable and responsible.”
Safe Supply joins other companies hoping to jump into the coca leaf market since Health Canada – the federal agency that governs the nation’s cannabis industry – began granting “dealer’s licenses” to “legally possess, produce, sell, and distribute” both cocaine and psilocybin.
British Columbia-based Adastra Holdings Ltd. (CSE: XTRX), Filament Health Corp. (OTCQB: FLHLF) (NEO: FH), and Power Leaves also plan to work with the plant.
Safe Supply said it will own investments and revenue royalty streams, as well as partner with and receive consulting and/or advisory fees from its investee companies, which management believes will, in combination, have the potential to provide a lucrative value chain and equity upside for investors, with recurring revenue and cash flow.
In addition, Safe Supply will have warrants, board seats, preferred vendor relationships, and right of first refusals with all investee companies where negotiated.
Origin Therapeutics Holdings was an actively managed investment company established, managed, and supported by leaders in the Canadian cannabis and psychedelics industries. At its inception, Origin primarily focused on investments in the then burgeoning psychedelics industry, with plans to invest in opportunities involving, where legally permitted, the research, design, development, testing, production, distribution and sale of psychedelics and services related thereto.
Safe Supply was born from a reverse merger with Origin, which had common shares listed for trading on the CSE under the trading symbol ORIG. Origin halted trading on Jan. 31, upon the announcement of the transaction to create Safe Supply.
Origin said it was discontinuing its business and ceasing all operations as a psychedelic investment company and restructuring its business. On Sept. 12, Safe Supply and 2683450 Ontario Inc. entered into an investment agreement that replaced the amended and restated letter of intent entered into in July.
Safe Supply Plans
Safe Supply said it provides a mechanism for investors to invest in the sector versus picking individual stocks.
According to the filing: “In this way, investors will gain exposure to a broad portfolio of companies that management has reasonably determined at the date of investment to have above-average potential to capitalize on the various opportunities the sector presents along the safe supply value chain. It is Safe Supply’s vision to be a diversified investment vehicle to create a collective of complementary companies that are licensed to participate or be otherwise engaged in the legal, regulatory approved narcotics business and operate in full compliance with applicable laws.”
In addition to working with coca leaves, Safe Supply will focus on auxiliary companies delivering technologies and service solutions to reduce harm from drug use, including testing kits, treatment clinics and other solutions.
The company will also continue to look for opportunities in psychedelics codrug companies and therapeutics clinic companies.