Canopy Growth announces that BioSteel obtains court approval in sale and investment solicitation process

SMITHS FALLS — Canopy Growth Corporation provided an update that pursuant to the proceedings under the Companies’ Creditors Arrangement Act involving BioSteel Sports Nutrition Inc., the Ontario Superior Court of Justice (Commercial List) has approved two transactions to sell all or substantially all of the assets of BioSteel Canada and BioSteel Manufacturing, LLC and that pending the closing of the transactions, Canopy Growth expects to realize proceeds which will improve the Company’s balance sheet.

On September 21, 2023, the CCAA Court granted an order authorizing BioSteel Canada to conduct, under the oversight of KSV Restructuring Inc., in its capacity as court-appointed monitor of BioSteel Canada, a sale and investment solicitation process in accordance with the terms and conditions relating thereto.

Pursuant to the SISP, two transactions were identified as the Successful Bids of a sale of substantially all of the assets of BioSteel Canada and a sale of all or substantially all of the assets of BioSteel Canada’s U.S. affiliate, BioSteel Manufacturing as contemplated by an asset purchase agreement dated November 9, 2023.

The CCAA Court has approved the Successful Bids and granted authority to consummate the transactions contemplated therein pursuant to the terms of approval and vestings order issued by the CCAA Court in respect of each of the Sale Transactions.

“We are pleased that this process has identified two qualified buyers for the BioSteel brand and assets. The elimination of the operating loss and cash burn as a result of ceasing to fund BioSteel has already significantly enhanced Canopy Growth’s financial position, and the anticipated proceeds of the Sale Transactions are expected to improve Canopy Growth’s balance sheet upon completion,” said Judy Hong, Chief Financial Officer, Canopy Growth.