SMITHS FALLS, Ont. 鈥� 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., 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.
Canopy described BioSteel as a "significant drag" on its profitability and cash flow, saying about 60 per cent of the company's adjusted EBITDA loss was attributable to BioSteel.
Canopy says BioSteel having creditor protection will limit its further funding obligations and help the company 聽focus on its core cannabis operations.
Canopy also intends to launch a Chapter 15 case in the U.S. to address its American BioSteel assets.
The move comes after Canopy said in June that it made management changes and parted ways with some staff after uncovering "material misstatements" in BioSteel's previous financial filings.
This report by The Canadian Press was first published Sept. 14, 2023.
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