Psychedelics Firm Origin Therapeutics Announced it Signed a Binding LOI With Narcotics Streaming and Investment Company Safe Supply Streaming Co.
Upon completion of the historic acquisition, the combined company will have secured the all-important first-mover advantage in the newly formed safe supply narcotics sector and will represent the world’s first publicly-listed pharmaceutical and narcotics investment company.
Tuesday evening, Origin Therapeutics (CSE: ORIG) announced the company signed a binding letter of intent (LOI) to acquire, via business a combination transaction, all of the issued and outstanding securities of Safe Supply Streaming Co., a leading pharmaceutical streaming and investment company in the new safe supply narcotics sector.
Upon completion of the acquisition, the new combined company is expected to become the world’s first publicly-listed pharmaceutical and narcotics investment company, with the goal of becoming a global powerhouse with a first-mover advantage in the rapidly emerging safe supply narcotic sector.
Governments worldwide have significantly changed attitudes towards narcotics and safe supply in recent years following a healthcare crisis relating to the supply of toxic narcotics containing fentanyl and other harmful untraceable compounds, along with deaths from fentanyl overdoses. Health Canada and British Columbia’s provincial government’s movement to decriminalize certain schedule 1 narcotics today marks Canada’s historic third and final wave of de-scheduling in their ground-breaking movement to fight the healthcare crisis. The safe supply of cannabis and legalization started in 2013 in Canada. Following the success of cannabis legalization in 2019, the Canadian government launched the second wave of de-scheduling narcotics with psychedelics and psychedelic-assisted therapy. This third and final wave of de-scheduling marks a monumental period for the country. It presents a unique opportunity for investors and commercial operators to work with the Canadian government to advance their efforts.
By going public via a business combination with Origin Therapeutics, Safe Supply will have access to the significant financial resources necessary to finance the company’s ambitious growth program.
The merger will give Safe Supply a golden opportunity to establish a strategic foothold and first-mover advantage in today’s burgeoning British Columbia sector. Safe Supply will also look to establish itself as an industry leader ahead of the anticipated global roll-out in additional Canadian provinces, the United States, and Europe.
Source: Global News YouTube
Safe Supply boasts a world-class management team, advisory board, investors and partners with deep industry experience and best-in-class knowledge from their time over the past decade working at the forefront of the cannabis and psychedelics sectors.
With a robust portfolio of investment targets operating in all parts of the safe supply value chain, from importation and distribution to laboratories and clinics, Safe Supply is positioning itself as the pre-eminent market leader in this rapidly emerging new sector.
Per the terms of the LOI, Safe Supply will complete a private placement financing on terms satisfactory to the company of at least $3 million and no greater than $4 million subscription receipts ultimately exchangeable into shares of the new combined public company.
The company says the financing proceeds will fund working capital and general corporate purposes, including potential streaming investments. In addition, Origin Therapeutics is expected to loan $500,000 in interim financing to Safe Supply to allow the company to hit the ground running and commence the execution of its business plan immediately. The combined company expects to have a cash position of $6 million following the completion of the private placement.
Speaking with Benzinga on the historic announcement, Safe Supply CEO Bill Panagiotakopoulos commented:
“This is a major milestone for Canadian political history and represents the third and final wave of de-scheduling narcotics here in Canada following the success of cannabis and psychedelics in prior years. Canada will become the first G7 country to make such a bold move to fight the fentanyl crisis and create a safe supply ecosystem. This will only be productive if we concurrently incorporate rehabilitation into the framework, and we intend on being heavily involved in that healing process through our various ventures. We are honored to be the first pharmaceutical/ narcotics streaming company with a first mover advantage and clear, efficient path to list on a public exchange to give us a strong foundation in this burgeoning sector.”
For full details on the terms of the planned acquisition, please refer to the official press release here.
Shares of Origin Therapeutics closed trading today at $0.025, even on the day.
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