BioSteel files for bankruptcy protection, parent company Canopy Growth looking for new buyer

BioSteel Sports Nutrition Inc. has filed for bankruptcy protection in Canada and the U.S., citing rapidly deteriorating liquidity despite receiving hundreds of millions in funding from parent company Canopy Growth Corp.

BioSteel ”does not align with Canopy Growth’s cannabis focused asset-light strategy,” Canopy chief executive David Klein said in a news release ThursdayCanopy first acquired a 72-per-cent stake in BioSteel in 2019 for about $50-million with the hope of developing CBD-infused sports drinks, and has since raised its stake to 90 per cent. Since the initial purchase, Canopy has invested $366-million in the sports-drink company through a secured loan and credit facility.

While BioSteel had “year-over-year” revenue growth, according to a document filed with U.S. securities regulators, it was still reliant on Canopy for financing. In an affidavit filed as part of CCAA proceedings, BioSteel’s general counsel, Sarah Eskandari, said that BioSteel still required approximately $15-million a month from Canopy.

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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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Canopy Growth lands creditor protection for BioSteel business, intends to sell brandSMITHS FALLS, Ont. — Canopy Growth Corp. says it has obtained creditor protection for its BioSteel Sports Nutrition Inc. division and intends to seek permission to sell the business. The Smiths Falls, Ont.
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Canopy Growth lands creditor protection for BioSteel business, intends to sell brandCanopy Growth Corp. says it has obtained creditor protection for its BioSteel Sports Nutrition Inc. division and intends to seek permission to sell the business.
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Canopy Growth lands creditor protection for BioSteel business, intends to sell brandCanopy 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.
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