Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Co. Targets More Verticals in Safe Supply

View Important Disclosures for this Article
Share on Stocktwits


This Canadian firm, with a streaming business model, intends to invest in two additional segments of the safe supply ecosystem. Here, learn more about this approach to reducing harms from illegal drugs.

Safe Supply Streaming Co. Ltd (SPLY:CSE; SSPLF:OTCQB; QM4:FSE) is expanding the areas within safe supply in which it will invest to include medical testing and artificial intelligence (AI)-powered healthcare technology, it announced in a news release.

"Medical testing and technology present the biggest opportunity for growth in our sector," Chief Executive Officer Bill Panagiotakopoulos said in the release. "We have identified fast-growing revenue streams, attracted institutional capital, and see substantial potential in this market."

Safe supply, or safer supply as it is sometimes called, involves providing prescribed medications to illegal drug users as a safer alternative and preventing and reducing harms associated with the illicit drug market, most significantly overdose and death, as defined by the Canadian government and the U.S.' National Institutes of Health.

Safe Supply Streaming, having developed a proprietary pipeline of mergers and acquisitions targets over the past two years, is well-positioned and will continue to explore partnerships and transaction structures. Its focus going forward will be on "total addressable markets offering the most accretive revenue opportunities in the short term," the release explained.

The AI-powered healthcare market, one of Safe Supply Streaming's targets, is forecasted to burgeon globally at a remarkable CAGR, of 48.1%, between 2024 and 2029, according to a Markets and Markets report. 

"You look at the market trends and the shift, and you see that there's going to be an opportunity to help people address a growing multi-billion dollar market," Panagiotakopoulos said in an interview.

Earlier this year, for example, Safe Supply Streaming invested in Safety Strips Tech Corp., which is commercializing fentanyl and xylazine test strips for public use at places like music festivals, concerts, addiction houses, and education centers.

In other corporate news, the Toronto, Ontario-based firm suspended funding to 2683450 Ontario Inc. and CannaLabs as of May 30 to focus on more lucrative investments. The focus will be more on the AI-powered healthcare market and med tech.

Significant Sector Growth Forecasted

The AI-powered healthcare market, one of Safe Supply Streaming's targets, is forecasted to burgeon globally at a remarkable CAGR, of 48.1%, between 2024 and 2029, according to a Markets and Markets report. Specifically, the market's value is expected to increase sixfold over the next five years, going from an estimated US$20.9 billion (B) to US$148.4B.

In this forecast period, it is projected that North America will account for much of the market.

As for the global medical testing market, according to a report published by Grand View Research, the market is anticipated to reach US$175B in 2024, with a CAGR of 6.5%. 

Need for Solutions to Opioid Crisis

During the past 10 years, deaths from drug overdose in Canada and the U.S. have reached "unprecedented levels," wrote the authors of a 2024 article in Substance Abuse Treatment, Prevention, and Policy.

In Canada, about 22 people died from an opioid overdose every day throughout the first six months of 2023 alone, according to the Canadian Government. The total of deaths, 40,642, was 5% higher than in the same period in 2022.

"This crisis has resulted from an increasingly toxic and volatile unregulated drug supply, contaminated with fentanyl and its analogues, combined with benzodiazepines and other non-opioid sedatives," they explained. Non-opioid sedatives include xylazine (called "tranq" or "the zombie drug") and, more recently, as reported by NPR, medetomidine.

The statistics bear this out. In Canada, about 22 people died from an opioid overdose every day throughout the first six months of 2023 alone, according to the Canadian Government. The total of deaths, 40,642, was 5% higher than in the same period in 2022.

In the U.S., one fentanyl-related death occurs about every five minutes, and at least seven in 10 counterfeit pills are deadly, U.S. Drug Enforcement Agency data indicate. Last year, more than 70,000 Americans fatally overdosed on fentanyl.

Fentanyl is the No. 1 killer of adults aged 18−45, and the age group seeing the fastest rise in fentanyl poisoning deaths in children under 14.

Safe Supply as a Remedy

Proponents of safe supply, a subject of controversy and debate, purport that it works. Safe Supply Streaming's CEO, Panagiotakopoulos, is one of them.

According to the Canadian government, research studies have shown that testing your drug supply results in lower rates of overdose and individual overdose risk, less use of fentanyl and other street-acquired substances, reduced hospital admissions and emergency room visits, fewer infections, stronger connections to general medical care, housing, and social support, and overall improvements in health and social well-being.

In North America, Canada has been leading the way in safe supply and harm reduction since 2016. Its efforts today include prescribed safer opioid supply programs, easier and expanded access to naloxone (a drug that temporarily reverses the effects of opioid overdoses), syringe safe-use supply programs, and safe consumption sites (supervised and non-supervised rooms for safe drug use).

In the U.S., some similar efforts, notably around naloxone, syringe supply, and safe consumption spaces, started coming online in the early 2020s but today "fall well short of peer nations," according to The Commonwealth Fund, a U.S. nonprofit organization working to improve the country's healthcare system.

streetwise book logoStreetwise Ownership Overview*

Safe Supply Streaming Co. Ltd (SPLY:CSE; SSPLF:OTCQB; QM4:FSE)

*Share Structure as of 3/11/2024

Safe Supply Streaming expects to deploy capital into additional entities in the safe supply realm, the company said.

Developments of this nature could boost its stock.

Ownership and Share Structure

According to Reuters, Safe Supply Streaming has 73.92 million (73.92M) shares outstanding and 71.23M free float traded shares.

The company reported that over 50% of Safe Supply is with strategic investors and held by family offices and large shareholders. 

The rest is in retail.

Its market cap is CA$2.8M, and its trading range over the past 52 weeks is CA$0.035−$0.37 per share.

Want to be the first to know about interesting Healthcare Services investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. 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.
  2. 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.
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 
  5. 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.

For additional disclosures, please click here.

Want to read more about Healthcare Services investment ideas?
Get Our Streetwise Reports' Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe