We’ve gained further insight into the financial situation of Biosteel Sports Nutrition Inc, the sports drink manufacturer owned by Canopy Growth in Smiths Falls.
The reason behind Canopy’s decision to divest itself of this company could be its substantial outstanding debts, amounting to a staggering 439 million dollars. These debts encompass various entities, including pro sports teams, leagues, retailers, and distributors.
Notable examples of those waiting for money include the NHL’s merchandising arm, which is owed 8.7 million dollars, the LA Lakers with 2.5 million dollars outstanding, the Miami Heat with just under a million dollars owed and even the former owner and founder of Biosteel Sports Nutrition Inc, Mike Cammalleri.
The financial burden seems to have been a significant factor in Canopy’s choice to sell the business, which they had acquired in 2019.
Biosteel Sports Nutrition Inc, once seen as a potential investment to boost Canopy’s prospects, has turned out to be a financial anchor. Canopy Growth has explicitly cited profitability challenges as the primary driver for their decision to divest from this business.
We will have more details on this story as they develop.
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