Bad business idea: Opening a meth and crack store that immediately gets shut down.
Maybe a good business idea? Early investing in the potential decriminalization of hard drugs.
Driving the news: Safe Supply Streaming is on track to list on the Canadian Securities Exchange. But it’s not like other investment firms: It claims to be the first company designed to invest in the “third wave” of drug reform, or policies relaxing laws around hard drugs.
- The company plans to invest in businesses poised to benefit from such reforms, like addiction clinics, fentanyl test-strip producers, and coca-leaf energy drink makers.
Catch-up: Several Canadian companies are betting big on drug reform and psychedelic therapy. Some have even sought permission from Health Canada to make and sell a variety of hard drugs… strictly for research purposes and only to licenced buyers, like hospitals.
In February, BC-based Lucy Scientific Discovery (or LSD… get it?) said it was looking to expand its licensing to make limited amounts of cocaine and heroin.
Filament Health, another BC drug research company, has a dealer’s license for several substances, including cocaine, and just last week raised $2 million.
Why it matters: With BC not even a year into its pilot of decriminalizing possession of small amounts of illicit substances, these companies will be bellwethers for the industry's viability.
Plus: Look no further than Canada’s legalization of marijuana for proof that black markets continue to survive and thrive even if an illicit product becomes legally accessible.—QH