Deals to sell BioSteel assets result in $30.4M in aggregate gross proceeds: Canopy

We’re going to eliminate the drag caused by Biosteel as we make business changes: Canopy Growth CEO David Klein, chief executive officer of Canopy Growth, joins BNN Bloomberg to discuss how he intends to turn the company around as it deals with negative earnings and its lagging Biosteel business unit.

Canopy Growth Corp. says the aggregate gross proceeds from selling off its sports drink business total $30.4 million.

The Smiths Falls, Ont., cannabis company says the proceeds come from two agreements linked to BioSteel Sports Nutrition Inc. that have closed.

The first deal involved the sale of BioSteel Canada to DC Holdings Ltd., which does business as Coachwood Group of Companies and also owns sports nutrition brand Canadian Protein.

The second transaction saw BioSteel sell its manufacturing business to New Jersey-based Gregory Packaging Inc., which is behind SunCup juice cartons.

Canopy says a portion of the proceeds will be used to repay debt.

The cannabis company put BioSteel up for sale when the sports drink business was placed under court protection from creditors under the Companies' Creditors Arrangement Act in September.

This report by The Canadian Press was first published Dec. 1, 2023.