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  /  Investment Thesis   /  First in, First out – Looking at a New Hypergrowth Industry Ready to Explode

First in, First out – Looking at a New Hypergrowth Industry Ready to Explode

Disseminated on behalf of Safe Supply Streaming Co Ltd (SSPLF)

QUARTERLY IN DEPTH ANALYSIS

SAFE SUPPLY STREAMING CO LTD.

This communication is not an offer to buy or sell securities nor is it to be construed as personal investment advice. Nothing contained in this communication should be relied upon as a promise or representation as to future performance.

ssplysc

In recent years, societal attitudes toward drug legalization have experienced a paradigm shift, reminiscent of the changes witnessed in the cannabis and psychedelic sectors.

Typically, the first to these sectors can see extensive growth and valuations explode like $CGC and $TLRY which both went over 1000% in a short period of time. Safe Supply Streaming Co. ($SSPLF), with a market capitalization on par with industry peers, aims to capitalize on this evolution. The company positions itself as a pioneering force in the small-cap, high-growth sector of the drug industry, leveraging its unique insights, strategic partnerships, and Zinnovative investment approach.

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

    • Idea: Long SPLY.CN $0.10 – $0.20
    • Target: $0.50 – $0.80+
    • Market Cap: 7M
    • Float: 65M (extremely tightly held)
    • Shares Outstanding: 70.22M
    • Options: 5M (warrants to management at $0.10)
    • Cash on Hand: $1.5M
SPLY.CN January 2024

$SSPLF (OTC)
$SAFE.CN (Canadian)
$QM4.F (Frankfurt)

Range break off the lows setup, expecting more and more volume to come in when this name gets picked up. Imo hidden gem, time to hold 6-12 months, basically waiting for that parabolic move.

Strategic Positioning:

Safe Supply (OTCQB: SSPLF; CSE: SPLY; FSE: QM4) has adopted a comprehensive strategy that involves engaging with a wide array of stakeholders. From discussions with medical professionals and government officials to interacting with law enforcement and even seeking insights from veteran dealers, the company has established a vast network of contacts. This approach, coupled with on-the-ground research in locations such as Peru and Europe, positions Safe Supply as a knowledgeable and well-informed player in the drug industry.

Investment Strategy:

Safe Supply’s investment strategy revolves around the First-In-First-Out (FIFO) model, offering investors access to series A venture rounds. By becoming a streaming investor, Safe Supply provides the opportunity for diversification and early-stage exposure, allowing investors to potentially benefit from substantial upside. The company’s role in providing liquidity and marketing support to ventures unable to go public independently adds further value to its unique approach.

Conglomerate Model:

Safe Supply envisions itself as a conglomerate, engaging in various aspects of the drug industry value chain. From strip testing to clinics and the actual sale of drugs, the company has strategically positioned itself in multiple markets, including Australia, Canada, and Switzerland. This diversified approach aims to create a resilient and cash-generating business model.

Revenue Growth & Expansion:

Anticipating substantial revenue growth by 2027-2028, Safe Supply (OTCQB: SSPLF; CSE: SPLY; FSE: QM4) plans to achieve multiples of revenue to attract additional capital. The company’s roll-up strategy involves transitioning from a small to mid, and potentially large-cap, entity through the acquisition of critical assets such as laboratories, contract research organizations (CROs), and clinics.

Capital Structure & Valuation:

Safe Supply boasts an early-stage valuation play, with a market capitalization of $7 million. A well-structured capital base, minimal liabilities, and strategic holdings, including a significant 41% stake in Cannalabs, the company is poised for potential upside. The absence of warrants and options for management and a relatively low burn rate contribute to a robust financial foundation.

    • Market Cap: 7M
    • Float: 65M (extremely tightly held)
    • Shares Outstanding: 70.22M
    • Options: 5M (warrants to management at $0.10)
    • Cash on Hand: $1.5M
Management & Pipeline:

A capable management team, complemented by an ambitious pipeline, positions Safe Supply (OTCQB: SSPLF; CSE: SPLY; FSE: QM4) for accelerated future growth. The company has identified a dozen global companies for potential acquisition or partnership, showcasing its commitment to expanding its footprint. Initiatives such as partnering in Fentanyl testing and importing Coca Extract products underscore Safe Supply’s dedication to innovation and diversification.

Upcoming Pipeline:

    • Q1: Finish developing licensing assets, including partnering in Fentanyl testing.
    • Q2: Import Coca Extract products for Testing, R&D and Product Creation.
    • Q3: Import Coca Leaf directly from Peru. There is currently only one other company in the United states that has a Coca import license and that is Stepan Company – which has a 2B Valuation.
Competitive Landscape:
    • Power Leaves Corp: Still private, Power Leaves boasts a $100M Valuation and is competition to Harbour (one of the portfolio companies that Safe Supply has an ownership stake in).
    • Pharmala Biotech Holdings Inc ($MDMA): 21M Valuation
    • Pharmadrug (Synthetic Cocaine): $4.2M Valuation
Macros & Politics:

An analysis of macroeconomic and political factors influencing Safe Supply’s (OTCQB: SSPLF; CSE: SPLY; FSE: QM4) strategy offers insights into global trends. From recreational cocaine use in Switzerland to MDMA use in Australia and drug decriminalization initiatives in the United States and Canada, the company’s strategy aligns with evolving global perspectives on drug legalization, including Amsterdam’s most recent call for new regulation of Narcotics.

Conclusion

In conclusion, Safe Supply Streaming Co. emerges as a trailblazer in the evolving landscape of the drug industry. With a comprehensive and strategic approach, the company is positioned to capitalize on changing societal attitudes and legislative shifts. By establishing itself as an authority in the space, Safe Supply aims to lead the industry, offering investors a unique opportunity to participate in the growth of a pioneering conglomerate in the small-cap, high-growth sector of the drug market.

SPLY.CN January 2024

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

    • Idea: Long SPLY.CN $0.10 – $0.20
    • Target: $0.50 – $0.80+
    • Market Cap: 7M
    • Float: 65M (extremely tightly held)
    • Shares Outstanding: 70.22M
    • Options: 5M (warrants to management at $0.10)
    • Cash on Hand: $1.5M
Current Idea is a speculation long – target $0.50 – $0.80+

More information on Safe Supply Streaming Co Ltd. can be found here.
 
Best Regards,
Spartan (aka ‘Chris’)

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