Canopy Growth Sees BioSteel Assets Sold Off Under CCAA Process
Canopy Growth (TSX: WEED) might yet get some value for its failed BioSteel division following a successful sale and investment solicitation process that took place under the Companies Creditors Arrangement Act.
Canopy this morning indicated that the Ontario Superior Court of Justice has approved two transactions to sell substantially all of the assets of BioSteel Canada and BioSteel Manufacturing.
The BioSteel Canada transaction is slated to see all intangible assets and intellectual property, formulas and recipes, inventory, and certified specified fixed assets sold to a successful bidder, pending the approval of the US Bankruptcy Court.
The BioSteel Manufacturing transaction meanwhile will see all the property, plant and equipment and other fixed assets, as well as the inventory of BioSteel Manufacturing, all productions reports and records, equipment logs and related data sold to a separate successful bidder, which is conditional upon the assignment of the lease agreement related to the facility in Verona, Virginia, and the approval of the courts.
READ: BioSteel Owes Millions To NHL, Professional Sports Teams: Bankruptcy Filing
While Canopy Growth did not identify the successful bidders in its release, the BioSteel Manufacturing transaction, as per court documents, saw Gregory Packaging Inc as the successful bidder. DC Holdings, who is operating as Coachwood Group of Companies, meanwhile was the successful bidder for the BioSteel Canada transaction.
Financial data related to the transactions has yet to be released. Canopy Growth however remains the largest creditor and shareholder of BioSteel Canada.
Canopy Growth last traded at $0.74 on the TSX.
Information for this briefing was found via Canopy Growth and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
