BioSteel Sports Nutrition Inc., CCAA

BioSteel Sports Nutrition Inc., a sports nutrition and hydration company focused on high-quality ingredients with a strong presence in the professional sports market, obtained CCAA protection on September 14.

BioSteel has incurred significant ongoing financial losses as it attempted to expand its market share within North America. The resulting liquidity crisis has been compounded by BioSteel's high production costs, which have historically resulted in negative gross margins. BioSteel is over 90% indirectly owned by Canopy Growth Corporation and BioSteel owes Canopy and a related entity approximately $366 million in secured debt. On September 13, 2023, Canopy informed BioSteel that neither it nor its affiliates intend to make any further cash investment in BioSteel’s business and, at the same time, Canopy demanded repayment under its facility.

The principal purpose of these CCAA proceedings is to undertake a court-supervised sale and investment solicitation process for BioSteel's assets and business.

Counsel/professional advisors are:

• Cassels is counsel for BioSteel;

• Akin Gump is US counsel for BioSteel in connection with its proposed Chapter 15 proceedings;

• KSV is the Monitor, represented by Bennett Jones;

• Chaitons LLP is counsel to the BioSteel Special Committee;

• Greenhill & Co. Canada Ltd. is investment banker to BioSteel in connection with the proposed SISP; and

• FTI Consulting is the financial advisor to Canopy.