Canopy Growth's BioSteel Unit Faces Bankruptcy and Restructuring Amid Cannabis Focus
Canopy Growth Corporation has announced that it will no longer fund its BioSteel Sports Nutrition Inc. business unit and that BioSteel has filed for creditor protection under the Companies' Creditors Arrangement Act. Canopy Growth, as the senior secured lender, expects to recover proceeds from the sale of BioSteel's assets. This move is part of Canopy Growth's strategy to simplify its business and focus on its core cannabis operations in North America. The company aims to achieve positive Adjusted EBITDA in all remaining business units by the end of FY2024. Canopy Growth has recently made significant progress in reducing its debt, selling properties, and achieving cost reductions.