Toronto, Ontario--(Newsfile Corp. - October 24, 2024) - Safe Supply Streaming Co. Ltd. (CSE: SPLY) (FSE: QM4) (OTCQB: SSPLF) ("Safe Supply" or the "Company") is pleased to announce two strategic developments involving Safety Strips Tech Corp. ("Safety Strips").
The Company has entered into a non-binding letter of intent ("LOI") to acquire the remaining interest in Safety Strips to complete the 100% acquisition of Safety Strips and has issued a promissory note (the "Promissory Note") to Safety Strips for general working capital purposes.
This proposed acquisition of Safety Strips is a key milestone for Safe Supply as it continues to execute on its strategic M&A plan. With a strong portfolio of innovative products, the Company remains committed to delivering value to its shareholders. This transaction is accretive to the previously announced Drug Lab 118 Ltd. ("Drug Lab") acquisition and will enhance distribution of Drug Lab's proprietary portfolio of test strips into retail, e-commerce and hospitality / sporting channels.
Safety Strips is a medical testing and technology solutions company with a portfolio of health and wellness tests as well as harm reduction tests including drink spike, fentanyl and xylazine.
Key Highlights of the Transaction:
Safety Strips offers a comprehensive portfolio of harm reduction products, including test strips for detecting illicit substances in drugs, alcohol, and more. These products are aligned with growing regulatory and consumer demand for safety solutions in both medical and wellness markets.
With commercialization already underway, Safety Strips is currently generating revenue through its distribution agreements and product pipeline. The acquisition allows Safe Supply to integrate these revenue streams with its existing business model.
The acquisition of Safety Strips complements Safe Supply's recent proposed purchase of Drug Lab, providing the Company with expanded capabilities in harm reduction and wellness. The two companies' products create an integrated portfolio that enhances Safe Supply's market position.
Geoff Benic, CEO of Safety Strips, commented: "We are excited about this proposed transaction and to work with the Supply team to execute on the growth and M&A strategy, This also allows Safety Strips to accelerate growth and capitalize on new market opportunities. With our harm reduction products and the technology creates a formidable pipeline of revenue generating opportunities."
Non-Binding LOI to complete the 100% acquisition of Safety Strips Tech Corp.
Safe Supply currently holds 3,500,000 shares of Safety Strips and intends to acquire the remaining shares to complete the 100% acquisition of Safety Strips. Under the terms of the non-binding LOI, Safe Supply will issue common shares in exchange for the remaining shares of Safety Strips. The proposed transaction is expected to be structured as an all-share deal, subject to customary conditions such as completion of satisfactory due diligence, negotiation of a definitive agreement, and regulatory approval. The final consideration payable by Safe Supply will be determined jointly by the parties upon completion of their mutual due diligence processes.
Issuance of Promissory Note
In addition to the LOI, Safe Supply has issued a Promissory Note to Safety Strips in the principal amount of $50,000. The Promissory Note is payable on demand and accrues interest at a rate of 5% per annum. The principal amount of the Promissory Note will be used by Safety Strips for general working capital purposes.
Bill Panagiotakopoulos, CEO of Safe Supply, added: "The acquisition of Safety Strips is a natural progression in our strategy. The exceptional work that Geoff and his team have done since our initial investment has elevated the company to the next level, we believe that bringing Safety Strips fully into our portfolio will allow us to leverage its commercial success and unlock additional value through synergies with Drug Lab.
About Safety Strips Tech Corp.
Safety Strips is a privately held company specializing in the development and commercialization of harm reduction products, including test strips for detecting illicit substances in drugs and alcohol. With a mission to reduce harm and enhance safety in communities, Safety Strips has developed a range of products aimed at preventing drug-related fatalities and supporting wellness.
About Safe Supply Streaming Co. Ltd.
Safe Supply Streaming Co. Ltd. (CSE: SPLY) (FSE: QM4) (OTCQB: SSPLF) is a publicly traded company that focuses on the acquisition, investment, and development of businesses within the medical, wellness, and technology sectors. The Company aims to drive sustainable growth and shareholder value by leveraging innovative, technology-driven solutions that address critical needs in healthcare and wellness.
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 Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
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; 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 the proposed acquisition of Safety Strips; the Company's ability to complete the acquisition of Safety Strips on the proposed terms, or at all; the ability of the Company to receive all required approvals for the completion of the Safety Strips acquisition; the integration of the Safety Strips products into the Company's portfolio; the ability of Safety Strips to repay the Promissory Note; 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 potential distribution expansion in the North American market; the Company and Safety Strips' respective abilities to maintain its stated licenses and obtain all necessary additional licenses and regulatory approval required for it to carry out its plans as described; 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; statements with respect to Safety Strips' ability to generate revenue from the sale of its products; the ability of the Company and Safety Strips to successful integrate their businesses; 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 the potential distribution expansion in the North American market; either the Company's or Strips' inability to maintain its stated licenses and obtain all necessary additional licenses and regulatory approval required for the Company or Strips to carry out its plans as described; the Company's inability to significantly enhance its portfolio after any strategic acquisitions it may complete, including the proposed acquisition of Safety Strips; 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 inability of the Company and Safety Strips to successful integrate their businesses; the ability for the Company to be a leader in the medical testing space due to the proposed acquisition of Safety Strips; 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.
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