Canopy Growth Corporation provided an update that pursuant to the proceedings under the Companies' Creditors Arrangement Act (CCAA) involving BioSteel Sports Nutrition Inc. (BioSteel Canada), that two sale transactions transferring the assets of BioSteel Canada and BioSteel have been completed for aggregate gross proceeds of $30.4 million.
Pursuant to the CCAA court-ordered sale and investment solicitation process, a sale of substantially all of the assets of BioSteel Canada to the Coachwood Group as contemplated by an asset purchase agreement dated November 9, 2023, and a sale of all or substantially all of the assets of BioSteel Manufacturing to another third party as contemplated by an asset purchase agreement dated November 9, 2023, have been completed. A portion of proceeds realized from the two transactions will be used to repay debt, which is expected to further reduce interest expense.
"With the completion of these two sale transactions, we have completed another critical action to focus Canopy Growth's business on our core cannabis operations and can now realize the proceeds of sale to further improve the Company's balance sheet," says Judy Hong, chief financial officer, Canopy Growth. "We wish the new owners the best in the future operation of the brand and assets."
"The BioSteel brand is loved and continues to serve professional athletes and has evolved beyond to cultivate a passionate and athletically inspired consumer base", adds Dan Crosby, the founder and CEO of the Coachwood Group, in a statement. "I am dedicated to continuing to deliver high-quality products under the BioSteel brand that everyone loves for years to come."