Safe Supply closes $935,000 private placement

Executive Summary

• Safe Supply Streaming Co. Ltd. has closed an upsized non-brokered private placement, raising total gross proceeds of $935,000, up from an initial target of $500,000.
• The company issued 18.7 million units at a price of $0.05 per unit, with net proceeds designated for licensing fees related to the Healthy Sprays agreement and general working capital.
• The transaction includes significant warrant components for both investors and finders, and involves an insider participation that qualifies as a related party transaction under MI 61-101.

Key Details

• Gross Proceeds: $935,000 (upsized from an initial $500,000 target).
• Units Issued: 18.7 million units.
• Price Per Unit: $0.05.
• Unit Composition: Each unit consists of one common share and one-half of one warrant.
• Investor Warrant Terms: Each whole warrant entitles the holder to purchase one additional common share at an exercise price of $0.075 per share for a period of 24 months from issuance.
• Finder’s Fees:
  • Cash commissions: $65,450.
  • Broker warrants: 1,309,000 broker warrants issued to eligible finders.
  • Broker Warrant Terms: Each exercisable to acquire one additional unit at $0.05 for a period of 24 months from issuance.
  • Finder: PowerOne Capital Markets Ltd. acted as finder for a portion of the offering.
• Use of Proceeds: Funding the licensing fee and related obligations under the licensing agreement with Healthy Sprays, plus general corporate and working capital purposes.
• Statutory Hold: All securities are subject to a statutory hold period of four months plus one day from the date of issuance.
• MI 61-101 Disclosure: An insider participated in the offering, constituting a related party transaction. The company relies on exemptions from formal valuation and minority shareholder approval requirements because the fair market value of securities issued to the insider does not exceed $2.5 million.

Notable Quotes

• "The strong demand for this financing from existing shareholders, members of our management team and new strategic investors underscores the confidence in our strategy and the momentum we are building across our portfolio of products," said Geoff Benic, chief executive officer of Safe Supply. "With the successful close of this upsized financing, we are well capitalized to advance the commercialization of the Healthy Sprays GLP-1 technology, continue to grow sales of our current product lines and execute on our vision of delivering accessible, science-driven wellness solutions at scale."