Cannabis Giant Canopy Growth Sells Its Sports Drinks Unit For $30.4M

Canopy Growth Corporation WEED CGC announced on Friday that it has closed the sale of BioSteel Canada and BioSteel Manufacturing, LLC for gross proceeds of $30.4 million.

The sale of “substantially all” of the assets of BioSteel Canada to the Coachwood Group as contemplated by an asset purchase agreement dated Nov. 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 Nov. 9, 2023, have been completed, the company said.

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," Judy Hong, CFO at Canopy Growth said. "We wish the new owners the best in the future operation of the brand and assets."

The Canadian cannabis giant recently received approval for the transaction from the Ontario Superior Court of Justice.

CGC Price Action

Canopy's shares traded 3.2216% higher at $0.5479 per share at the time of writing on Friday morning.

• Sativa Or Indica? Canopy Growth Launches New Cannabis Flower Products To Suit All Tastes
• Canopy Growth Cannabis Q2 FY2024: Cost Reduction Impact On EBITDA, Debt And Margins
• Corona Beer Maker Walks Away From Remaining Warrants Of Weed Giant Canopy Growth

Photo: Courtesy of Iryna Rahalskaya on Shutterstock