(This is a developing story that will be updated.)
Struggling Canadian cannabis producer Canopy Growth Corp. is ceasing funding of its BioSteel subsidiary and plans to conduct a court-supervised sale of the brand and its property, the Ontario-based company said Thursday.
BioSteel, a popular sports nutrition and hydration brand, also obtained an initial order for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) from a Canadian court, according to a Canopy news release.
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Entering CCAA proceedings allows BioSteel to conserve cash, and effectively puts the business “into hibernation to preserve its assets,” Canopy’s said in its announcement.
“BioSteel’s application for and entry into the CCAA process was commenced as BioSteel no longer has access to funding for the brand which continued to generate negative operating cash flow,” Canopy said in the news release.
In the fiscal year 2023, covering April 2022 through March 2023, BioSteel
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