Origin Therapeutics Holdings Inc. ( CSE:ORIG ) is buying Safe Supply Streaming Co. Ltd. as per a binding LOI with a formal agreement expected by the end of February. Origin is an investment issuer that has historically focused on making equity investments in psychedelics-industry-related. It should be noted that in December 2022 Origin announced that its board of directors had initiated a review process to consider, review and evaluate strategic alternatives for the company.
Safe Supply will complete an arm’s length equity financing of at least $3 million and no greater than $4 million subscription receipts ultimately exchangeable into Resulting Issuer Shares. The proceeds from the Private Placement will be used to fund working capital and general corporate purposes, including potential streaming investments.
Upon closing of the Private Placement, the Resulting Issuer will have more than $6 million in cash to execute its business plan. Origin has agreed to lend up to $500,000 as interim financing to Safe Supply to allow Safe Supply to execute near-term business objectives.
Safe Supply is a pharmaceutical streaming and investment company tackling the global safe supply ecosystem. Safe Supply has a portfolio of potential letters of intent for investments across the value chain from narcotics licenses to laboratories to clinics and more.
Recently, Health Canada and British Columbia’s provincial governments moved to decriminalize certain schedule 1 narcotics marking the third and the final wave of de-scheduling in Canada in its 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. The company said in a statement, “This third and final wave of de-scheduling marks a monumental period for the country and presents a unique opportunity for investors and commercial operators to work with the Canadian government to advance their efforts.”