Safe Supply Streaming Co Ltd., (CSE SPLY), announced on Monday that it would acquire the remaining 94.31% of Safety Strips Tech Corp.
The company stated that under the agreement Safety Strips’ shareholders would receive 1,2748 Safe Supply shares per Safety Strips stock held. According to British Columbian business law, the deal will take place through a “three-cornered” amalgamation.
This deal was made just days after Safe Supply purchased a stake of 7% in Safety Strips. Safety Strips specializes in harm reduction technology and fentanyl test strips.
Geoff Benic said, “Our transaction marks an exciting chapter for Safety Strips”. We can accelerate growth by joining forces and expanding the reach of innovative solutions.
Safety Strips plans to produce 100 million test strips per year, targeting the markets of North America and Europe, says the company. It plans to sell its product through university partnerships, concerts, and festivals.
Safe Supply announced that Raf Souccar has been appointed to the board of directors. Souccar brings extensive knowledge of drug policy and security to the board. He was previously Deputy Commissioner for Federal and International Policing at the Royal Canadian Mounted Police.
These companies have positioned themselves in order to benefit from recent changes. Health Canada issues licenses that allow companies to engage in legal activities with controlled substances.
Safe Supply’s CEO Bill Panagiotakopoulos stated that Safe Supply plans to enter into other harm reduction technologies including products for detecting drink tampering at bars.
Safety Strips’ shareholders as well as the Canadian Securities Exchange must approve this deal. According to the company, it is anticipated that the transaction will close soon after receiving approvals.