Canopy Growth Corp (TSX: WEED) (NYSE: CGC) announced today that it had entered into an all-cash transaction to purchase a majority stake in Biosteel Sports Nutrition. The firm is focused on providing hydration and sports nutrition products to high performing athletes.
The purchase is part of a strategy related to laying groundwork for when the use of CBD is legalized across numerous major sports leagues in the US and globally, including CBD derived from hemp. With Biosteel being a leader in the sports nutrition category, the acquisition will provide a launch pad for Canopy Growth once regulations allow.Â
Biosteel Sports Nutrition currently has partnerships with a number of national sports organizations, including USA Hockey, Canada Basketball, Athetics Canada, and the Professional Hockey Players Association, and products have been purchased by a majority of major sports teams across the four main leagues in North America. The firm also has a number of brand ambassadors, including Connor McDavid, Wayne Gretzky, Eugenie Bouchard, and Ezekiel Elliot.
Canopy Growth under the terms of the agreement has acquired a 72% stake in Biosteel Sports Nutrition, with the issuer indicating that there is an undisclosed path to 100% ownership in the firm. It is not known what price was paid for the stake in the firm.
Canopy Growth closed yesterdays session at $28.85 on the Toronto Stock Exchange.
Information for this briefing was found via Sedar and Canopy Growth Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
