Sports drink company BioSteel filing for creditor protection in U.S. and Canada

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The owner of sports drink company BioSteel says it has filed for creditor protection in the U.S. and Canada and is trying to find a buyer for the business.

Ontario-based Canopy Growth, the largest cannabis company in North America, said in a press release Thursday that it has ceased funding BioSteel Sports Nutrition Inc. and that BioSteel has commenced proceedings under the Companies Creditors Arrangement Act.

BioSteel was founded in Toronto in 2009 by entrepreneur John Celenza and then-NHLer Mike Cammalleri. The company has a marketing partnerships with several dozen NHL, NBA and NFL teams, and notable athletes including Connor McDavid, Mathan MacKinnon, John Tavares and recent No. 1 overall pick Connor Bedard — all of whom attended a recent training camp together.

Canopy Growth's earnings show BioSteel racked up more than $32 million in sales in the first quarter of this year, more than twice as much as it did in the same time last year. But it spent more than $40 million to book those sales, including about $12 million in advertising and promotional costs related to the National Hockey League sponsorship.While companies do often shut down completely as a result of CCAA proceedings, they don't always.

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Canopy Growth lands creditor protection for BioSteel business, intends to sell brandThe cannabis company says it pursued creditor protection from the Ontario Superior Court of Justice because its sports drink business BioSteel no longer has access to funding
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