A an official inspection by Health Canada to acquire a dealer license to produce, distribute, and export controlled substances.subsidiary has undergone
The license would position CannaLabs as "a key player in the sector, offering transformative value to Safe Supply Streaming's shareholders," the company said in a release.
"This is a transformative moment for CannaLabs and, by extension, for Safe Supply Streaming," said Safe Supply Chief Executive Officer Bill Panagiotakopoulos. "The successful inspection by Health Canada is not just a procedural milestone but a strategic leap forward and shows CannaLabs' commitment to compliance, quality, and innovation. This will not only enhance Safe Supply's portfolio but also significantly contribute to our strategic vision of becoming a global leader in the controlled substance industry."
The market for regulated substances encompasses a variety of pharmaceuticals and narcotics, including morphine, valium, Ritalin, heroin, cannabis, diazepam, flunitrazepam, and ketamine, the company said.
"The acquisition of a dealer license will enable CannaLabs to legally engage in the production, distribution, and export of controlled substances, a sector that is witnessing rapid growth and significant investor interest globally," the company noted.
CannaLabs To Conduct Cutting-Edge Research
Health Canada, the agency in charge of the cannabis industry, has begun granting "dealer licenses" to legally possess, produce, sell, and distribute some controlled substances for scientific and medical purposes.
British Columbia has also temporarily removed criminal penalties for the possession of small amounts of cocaine, methamphetamine, MDMA, and opioids as part of a three-year pilot program.
Safe Supply's foundational investments include CannaLabs and Safe Supply Licensing Co.
Safe Supply has said CannaLabs will be conducting cutting-edge research on MDMA, cocaine, DMT, ketamine, and other psychoactive compounds. It can also conduct analytics and testing for any compounds manufactured in Canada or imported to support safe supply programs.
The dealer license would allow CannaLabs to import and test controlled substances, Safe Supply said.
The Catalyst: A 'Safer Supply'
As anti-drug policies have failed to affect the drug crisis, the public and policymakers have had to re-evaluate their relationship with substances. Safer Supply programs have become a prominent tool in the effort to prevent overdose deaths.
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 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 wrote. "Safe supply is an approach to reduce risk of accidental drug toxicity deaths and other harms from reliance on the unregulated drug supply."
Global Market Set To Expand
According to researchers at the National Institutes of Health in 2020, safer supply programs have seen success across Canada. The researchers urged widespread adoption of the programs and revised regulation in the United States based on their positive findings related to the Canadian programs.
In Vancouver, such programs have created an infrastructure to deliver pharmaceutical-grade opiates, which had not been contaminated with deadly amounts of fentanyl, to people suffering from substance abuse disorders, reported Paul Moakely with Time Magazine in 2021.
According to the report, the program had the support of the local government, which provided it with CA$3 billion in funding.
The global market for controlled substances was estimated at US$84.44 billion in 2022 and is expected to expand to as much as US$142.11 billion by 2032 with a compound annual growth rate (CAGR) of 5.34% from 2023 to 2032, Precedence Research said.
"Increased research and development (R&D) activities are expected to support the invention of a better drug delivery system," the report said. "Subsequently, the global controlled substance market will show significant growth."
Safe Supply also announced the departure of Ronan Levy as the company's president. He will remain a consultant to the company and his duties will be assumed by Panagiotakopoulos.
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3.66% of the company.
According to Reuters, Director Jonathan Goldman owns 1.60% of the company with 1.18 million shares, Chairman and CEO Vasislios Panagiotakopoulos owns 1.19% of the company with 0.88 million shares, Director Alexander Somjen owns 0.27% of the company with 0.20 million shares, Director Kelvin Wah Chin Lee owns 0.20% of the company with .15 million shares, Director Michael Galego owns 0.18% of the company with 0.14 million shares, Ronan Levy owns 0.14% of the company with 0.10 million shares, Director Brianna Davies owns 0.07% of the company with 0.05 million shares, and Vice President of Corporate Development Settimio Coscarella owns 0.01% of the company with less than 0.01 million shares.
Reuters reports that the rest is in retail.
According to Reuters, there were 73.92 million shares outstanding with 71.23 million free float traded shares, while the company has a market cap of CA$9.92 million and trades a 52-week range of CA$0.07 and CA$0.37.
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- 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.
- 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.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- 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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