A company that just went public in the United States is making a bold bet that cocaine will be legalized.
Canada-based Safe Supply claims it is at the “front line of the third wave of drug policy reform” and is lobbying for an end to the drug war and the legalization of banned substances such as LSD and cocaine. sources told On the Money.
The company is publicly traded in Canada, valued at just about $8.6 million, and listed on a U.S. over-the-counter exchange last week.
Safe Supply says that just as CBD and adaptogenic mushrooms have led the way to the decriminalization and legalization of weed and psychedelic mushrooms in some states, coca leaf has also grown in popularity. (According to the National Institute, coca leaves are non-toxic and non-addictive.) Health — would lead the way to cocaine legalization.
In the short term, the company plans to invest in legal coca products, which it claims can do everything from boost energy to solve digestive problems. In fact, they are working on bringing several beverages containing coca extract, a legal substance, to market in the United States next year.
“We compared coca to CBD because coca is the medicinal part of the drug, not the psychoactive part,” said Bill Panagiotakopoulos, CEO of Safe Supply. “It's amazing. It gives me energy and I don't get frustrated.”
But they are pinning their future on the hope that cocaine will be legalized, and the company predicts it will eventually become a $360 billion market.
That's despite the fact that legalizing cocaine across the United States seems far-fetched at best, especially given the surge in drug use in Oregon after its decriminalization. That's what it means.
Even Oregon's most progressive legislators, who decriminalized possession of small amounts of hard drugs in 2020, are reconsidering the decision. The move currently faces “strong headwinds in the ongoing state after public drug use skyrocketed due to the spread of fentanyl and a spike in opioid deaths, including among children,” according to the report.
Safe Supply officials argue that Oregon should have loosened its regulations further.
“In our view, Oregon's decriminalization efforts did exactly what they were supposed to do: bring underground activity above ground and more effectively regulate it,” Panagiotakapoulos said. insisted. “The problem is that reform efforts have not gone far enough.”
“As the system moves to a full 'legalize, regulate, educate' policy, significant public and private collaboration is needed to ensure safe supply, provide necessary support resources, and educate people on safe and effective use. It was unreasonable to expect results unless significant investments were made, “far beyond what has already happened,'' he added.
He also points to the fact that Portugal decriminalized all hard drugs more than 20 years ago. According to a July article about Portugal: washington postBut “in the meantime, a resurgence in visible urban drug use is prompting mayors and others here to ask explosive questions.” Is it time to reconsider?”
It is too early to tell whether British Columbia's efforts to decriminalize drugs or Bern, Switzerland's legalization of cocaine will be successful.
The company is still trying to stay ahead of U.S. legalization by investing in research labs that study cocaine and buying tools like fentanyl strips that will be important if cocaine becomes legal. Executives are also considering investing in pharmacies, the people added.
But even if it were to become legal, some say it may not bring in the huge fortunes many were hoping for. These people note that even after marijuana was legalized, the marijuana industry hasn't brought in as much wealth as some had expected.
“At the end of the day, it’s just agriculture,” said a person familiar with the cannabis industry. “You wouldn't put a multi-billion dollar valuation on a corn farm. That's essentially what growing coca trees is all about.”
