Canopy Growth lands creditor protection for BioSteel business, intends to sell brand

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Canopy Growth Corp. says it has obtained creditor protection from the Ontario Superior Court of Justice for BioSteel Sports Nutrition Inc. and intends to seek permission to sell the sports drink business.

Tired of its sports drink business weighing on its books, Canopy Growth Corp. is making moves to shed the division.

"We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and positioned to be a leader in the North American cannabis sector." BioSteel was started by entrepreneur John Celenza and hockey star Michael Cammalleri in Toronto in 2009 and quickly became ubiquitous on arena and sports field benches through partnerships with the Toronto Raptors, the Toronto Blue Jays, the National Hockey League and the U.S. Soccer Federation.Canopy reported that advertising and promotional investments in BioSteel, including costs related to its NHL sponsorship, had increased by about $12 million in its most recent quarter.

Investors appeared pleased with the news, pushing the company's share price up by 26 cents or almost 17 per cent up to $1.82 in mid-morning trading.Canopy hopes its move away from BioSteel will complement the parent company's efforts over the last few years to streamline its business through layoffs, facility closures and a more detailed look at expenses.

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