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Drug Reform Streaming Co. Starts Trading on CSE

Source: Streetwise Reports 10/12/2023

This company investing in and incubating companies at the forefront of drug policy reform has started…



Source: Streetwise Reports 10/12/2023

This company investing in and incubating companies at the forefront of drug policy reform has started trading on the Canadian Securities Exchange. One writer says buying stock is a chance to be a part of a "movement."

Safe Supply Streaming Co. Ltd (SPLY:CSE), a company investing in and incubating companies at the forefront of drug policy reform, has started trading on the Canadian Securities Exchange under the symbol "SPLY."

The company said it would invest across the safe supply ecosystem, including a recent focus on the applications of coca leaves, to generate short-term revenues for Safe Supply while investee companies grow.

"The burgeoning safe supply ecosystem is more than just a business; it's a movement," said Safe Supply Chief Executive Officer Bill Panagiotakopoulos. "A global shift is underway where governments, policymakers, and societies are making the decision to accept and embrace all drugs, whether through de-scheduling, rescheduling, or legalization because existing policies simply haven't worked."

SPLY closed at CA$0.215 per share on its first day, October 3, and was CA$0.23 on Wednesday morning.

In January, British Columbia temporarily removed criminal penalties for the possession of small amounts of cocaine, methamphetamine, MDMA, and opioids as part of a three-year pilot program.

Health Canada, the agency in charge of the cannabis industry, has begun granting "dealer's licenses" to legally possess, produce, sell, and distribute cocaine and psilocybin for scientific and medical purposes but not for the general public.

In Portugal, overdose deaths have plunged by 80% since it launched a decriminalization program there more than 20 years ago. The percentage of drug users diagnosed with new HIV infections fell from 52% in 2000 to 7% in 2015, according to Filter, which reports on drug policy news.

Problematic drug use and drug-related incarceration have both gone down in the European country, while more people have entered treatment, according to the report.

The Catalyst: Source of New Medicines

Safe Supply emerged from a reverse merger with Origin Therapeutics Holdings Inc., which traded on the CSE under the symbol "ORIG" until January 31.

The company said its leadership team is made up of pioneers from the cannabis and psychedelics industries.

"Schedule 1-3 compounds such as cannabis, psychedelics, and others have been a source of many new medicines for approval, and this trend will continue as other drugs are de-scheduled," the company said in its investor presentation.

According to the World Health Organization, drug use caused about 600,000 deaths in 2019, with close to 80% of them related to opioids and about 25% caused by opioid overdose. About 125,000 people died of an opioid overdose in 2019.

Some governments are re-evaluating their approach and shifting toward decriminalization, including Portugal, the Netherlands, the Czech Republic, and Germany.

"Far from a simple act of leniency, this strategic move is a considered response," noted Bill McNarland for The Dales Report. "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."

Co. Looking at Many Opportunities

Safe Supply said its foundational investments include CannaLabs and Safe Supply Licensing Co.

CannaLabs is licensed by Health Canada and will be conducting cutting-edge research on MDMA, cocaine, DMT, ketamine, and other psychoactive compounds, the company said.

It can also conduct analytics and testing for any compounds manufactured in Canada or imported to support safe supply programs.

Safe Supply Licensing is in the late-stage application process for a dealers' license pursuant to import and test controlled substances, Safe Supply said.

The company said it plans to execute on many opportunities over the next six to 12 months.

"The leadership team has developed a proprietary pipeline of early-stage companies that have strong management teams and well-designed business strategies that will play a pivotal role in the burgeoning safe supply ecosystem," Safe Supply said in its investor presentation.

'A Larger Narrative'

Sometimes called "safer supply," the movement refers to providing prescribed or regulated medications as a safer alternative to illegal drugs, which puts users at a higher risk of overdosing.

"These services are intended to reach people at risk of overdose for whom currently available care options have been ineffective or inappropriate," according to the Canadian government's website.

Drugs of known quality, composition, and potency are safer than unregulated sources, according to a study published this year in the Journal of Studies on Alcohol and Drugs by Matthew Bonn, Adamm Palayew, Natasha Touesnard, Thomas D. Brothers, and Claire Bodkin.

"Existing approaches, such as treatment and opioid agonist therapy, have failed to make an impact on this crisis, justifying the need for additional interventions related to the unregulated drug supply," the researchers said. "Safe supply is an approach to reduce risk of accidental drug toxicity deaths and other harms from reliance on the unregulated drug supply."

The implications of Safe Supply's listing are far-reaching, according to McNarland with The Dales Report.[OWNERSHIP_CHART-10903]

"Here's a company addressing a global crisis, both in terms of health and the associated illicit trade, head-on," he wrote. "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."

Ownership and Share Structure

Nearly 4% of the company is held by strategic investors, according to Reuters. The rest is retail.

Top shareholders include Jonathan Goldman with 1.68%, CEO Vasilios Panagiotakopoulos with 1.25%, Alexander Somjen with 0.28%, Kelvin Wah Chin Lee with 0.21%, and Michael Galego with 0.19%.

It has a market cap of CA$16.85 million with about 70 million shares outstanding. It trades in a 52-week range of CA$0.37 and CA$0.06.


Important Disclosures:

  1. Safe Supply Streaming Co. Ltd has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Safe Supply Streaming Co. Ltd.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
  5. This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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( Companies Mentioned: SPLY:CSE; QM4:FSE, )

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