Toronto, Ontario--(Newsfile Corp. - September 26, 2024) - Safe Supply Streaming Co. Ltd. (CSE: SPLY) (FSE: QM4) (OTCQB: SSPLF) (the "Company" or "Safe Supply") is pleased to announce a proposed acquisition in Drug Lab 118 Ltd. a portfolio of proprietary harm reduction test strips, enhancing its moot and SKU portfolio.
The Company has entered into a non-binding letter of intent with Druglab118 Ltd. ("Drug Lab Parent") in respect of an investment in its wholly owned subsidiary, Drug Lab 118 Ltd. ("Drug Lab U.S."), dated September 26, 2024 (the "LOI"). The LOI contemplates Safe Supply acquiring all of the issued and outstanding shares in the capital stock of Drug Lab U.S. from Drug Lab Parent (the "Acquisition") in exchange for common shares in the capital of Safe Supply ("Consideration Shares") at a deemed value of $0.05 per share. It is currently expected that Safe Supply will issue 10,000,000 Consideration Shares to Drug Lab Parent in connection with the Acquisition, which will be subject to contractual restrictions on resale such that 1/3 of the Consideration Shares may be traded on each of the four, eight and twelve month anniversaries of the closing of the Acquisition. In addition, it is anticipated that Drug Lab Parent will appoint one nominee to the board of directors of Safe Supply at closing of the proposed Acquisition.
In addition, upon closing of the Acquisition, the Company will issue 1,000,000 common shares of Safe Supply to an arm's length third party finder as a finder fee (the "Finder Fee Shares").
All securities issued connection with the above transactions will be subject to a hold period of four months and a day pursuant to applicable securities laws.
This Acquisition significantly enhances Safe Supply's portfolio, expanding its capabilities in harm reduction with a suite of test kits developed through Drug Lab Parent's extensive research and development efforts over the last several years. Drug Lab Parent's team boosts an impressive scientific bench who have spent years refining and developing their portfolio of proprietary test strips and we are pleased to have them for the very important North American market. Drug Lab U.S., a Delaware registered corporation is a wholly owned subsidiary of Drug Lab Parent and it has an exclusive distribution agreement with Drug Lab Parent to distribute products of Drug Lab Parent in North America.
With Drug Lab Parent's portfolio, Safe Supply now offers a comprehensive suite of test kits that address a wide range of narcotics, providing a competitive edge in the market. The ongoing collaboration with Greenlane Holdings amplifies the distribution and market reach of Safety Strips (an investee company of Supply), creating a robust pipeline for growth.
Bill Panagiotakopoulos, CEO of Safe Supply, stated: "This Acquisition marks a salient milestone as we strengthen our growing portfolio in medical testing and harm reduction. We are confident that we can add substantial value to Druglab in their North American sales effort and position their products as leaders in their respective categories.."
Colin L, CEO of Druglab Parent, stated, "We are excited to work with Safe Supply to expand our North American business, and we are confident with strong partners such as Safe Supply, we can successfully execute on our vision, while dominating the harm reduction space."
A Growing Market Opportunity
The global market for narcotic testing and harm reduction solutions is experiencing rapid growth, driven by increasing awareness and regulatory demands for safer drug use practices. The Acquisition of Drug Lab U.S. positions Safe Supply to capitalize on this expanding market, with proprietary technology that has already seen significant investment in Europe.
The global market for drug testing kits is expected to reach $11.83 billion by 2028, growing at a CAGR of 5.0% from 2021 to 2028. (Polaris Market Research)
This Acquisition is not only a testament to Safe Supply's strategic vision but also serves as a strong catalyst for future revenue growth. With the integration of Drug Lab Parent's technology, Safe Supply is poised to see a substantial increase in its market share within the medical testing and harm reduction industry.
The acquisition of Drug Labs U.S. is a pivotal step in Safe Supply's journey to becoming a leader in the medical testing space, particularly in harm reduction technologies. Investors can look forward to continued growth, driven by strategic acquisitions, innovative partnerships, and a clear commitment to expanding the Company's market presence.
Safe Supply remains committed to delivering shareholder value through strategic growth initiatives and its goal to achieve a leadership position in the rapidly evolving market for harm reduction solutions.
About Drug Labs Parent, Drug Labs U.S.
Druglab118 Ltd. was incorporated in the United Kingdom in March 2013 with a mission to deliver the science used in forensic testing and detection to consumers. The company is focused on the development of innovative chemical technologies. Druglab118 Ltd. has developed specific expertise in the area of illicit substance detection through the creation of innovative and patented drug detection solutions.
Drug Lab 118 Ltd., a Delaware registered corporation is a wholly owned subsidiary of Druglab118 Ltd. and it has an exclusive distribution agreement with Druglab118 Ltd. to distribute products of Druglab118 Ltd. in North America.
SPLY through this Acquisition will acquire all the issued and outstanding shares Drug Lab 118 Ltd. and will retain the exclusive rights to distribute current and future products of Druglab118 Ltd. in North America.
About Safe Supply Streaming Co. Ltd.
Safe Supply Streaming Co. Ltd. (CSE: SPLY) (FSE: QM4) (OTCQB: SSPLF) is a publicly traded company specializing in the acquisition, investment, and development of companies within the medical and wellness sectors. With a focus on innovative technology-driven solutions, Safe Supply aims to create sustainable value for its investors while addressing critical needs in the healthcare industry. The Company is committed to delivering high-impact solutions and fostering growth through its diverse portfolio of companies.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Safe Supply Streaming Co Ltd.
Email: info@safesupply.com
Bill Panagiotakopoulos
Chief Executive Officer and Director
Email: bill@safesupply.com
Website: www.safesupply.com
The CSE does not accept responsibility for the adequacy or accuracy of this release.
The securities issuable under the Acquisition and the Advisor Agreement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events.
The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's performance, business objectives and milestones and the anticipated timing thereof, and costs in connection with, the execution or achievement of such objectives and milestones; the potential benefits resulting from the entering of the LOI between the Company and Drug Lab Parent; the Company, Drug Lab Parent, and Drug Lab U.S. to maintain its stated licenses and obtain all necessary additional licenses and regulatory approval required for the Company to carry out its plans as described; the Company issuing 10,000,000 Consideration Shares to Drug Lab Parent in connection with the Acquisition, which will be subject to contractual restrictions on resale; the appointment of one nominee to the board of directors of the Company at closing of the proposed Acquisition; the issuance of 1,000,000 Finder Fee Shares upon closing of the Acquisition; the Company's portfolio being significantly enhanced due to this Acquisition, expanding its capabilities in harm reduction with test kits developed through Drug Lab Parent's research and development efforts; statements with respect to the growing market for narcotic testing and harm reduction solutions; statements with respect to the market for narcotic testing and harm reduction solutions experiencing rapid growth on a global scale; statements with respect to the ability for the Company to be a leader in the medical testing space due to this Acquisition; and statements with respect to the expansion of the Company's market presence due to continued growth, strategic acquisitions, and innovative partnerships.
Forward-looking information in this press release are based on certain assumptions and expected future events, namely: the Company's ability to maintain or exceed its current performance, and carry out its business objectives and milestones and under the anticipated timing and costs in connection with, the execution or achievement of such objectives and milestones; the Company's ability to capitalize on the potential benefits resulting from the entering the LOI, including the potential distribution expansion in the North American market; the Company, Drug Lab Parent, and Drug Lab U.S's abilities to maintain its stated licenses and obtain all necessary additional licenses and regulatory approval required for the Company to carry out its plans as described; the Company's ability to issue 10,000,000 Consideration Shares to Drug Lab Parent in connection with the Acquisition, which will be subject to contractual restrictions on resale; the Company's ability to appoint one nominee to the board of directors of the Company at closing of the proposed Acquisition; the Company's ability to issue 1,000,000 Finder Fee Shares upon closing of the Acquisition; the Company's portfolio will be significantly enhanced due to this Acquisition, expanding its capabilities in harm reduction with test kits developed through Drug Lab Parent's research and development efforts; statements with respect to the growing market for narcotic testing and harm reduction solutions; statements with respect to the market for narcotic testing and harm reduction solutions experiencing rapid growth on a global scale; the ability for the Company to be a leader in the medical testing space due to this Acquisition; and that there will be continued growth, strategic acquisitions, and innovative partnerships that would expand the Company's market presence.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company's inability to maintain or exceed its current performance, and carry out its business objectives and milestones and under the anticipated timing and costs in connection with, the execution or achievement of such objectives and milestones; the Company's inability to capitalize on the potential benefits resulting from entering the LOI, including the potential distribution expansion in the North American market; the Company, Drug Lab Parent, and Drug Lab U.S's inabilities to maintain its stated licenses and obtain all necessary additional licenses and regulatory approval required for the Company to carry out its plans as described; the Company's inability to issue 10,000,000 Consideration Shares to Drug Lab Parent in connection with the Acquisition, which will be subject to contractual restrictions on resale; the Company's inability to appoint one nominee to the board of directors of the Company at closing of the proposed Acquisition; the Company's inability to issue 1,000,000 Finder Fee Shares upon closing of the Acquisition; the Company's inability to significantly enhance its portfolio after this Acquisition, leading to the Company's inability to expand its capabilities in harm reduction with test kits developed through Drug Lab Parent's research and development efforts; statements with respect to the growing market for narcotic testing and harm reduction solutions; statements with respect to the market for narcotic testing and harm reduction solutions experiencing rapid growth on a global scale; the ability for the Company to be a leader in the medical testing space due to this Acquisition; and that there will be continued growth, strategic acquisitions, and innovative partnerships that would expand the Company's market presence.
Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224714
SOURCE: Safe Supply Streaming Co Ltd.
