On
Pursuant to the SISP, two transactions were identified as the Successful Bids (as defined in the SISP): a sale of substantially all of the assets of BioSteel Canada (the 'BioSteel Canada Transaction') as contemplated by an asset purchase agreement dated
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
Overview of BioSteel Canada Transaction
Pursuant to the BioSteel Canada Asset Purchase Agreement, BioSteel Canada has agreed to sell substantially all of the assets of BioSteel Canada (other than certain inventory, accounts receivable and contracts), including: (a) all intangible assets and intellectual property; (b) all of BioSteel Canada's formulas and recipes; (c) all inventory of BioSteel Canada, other than Excluded Inventory (as defined in the BioSteel Canada Purchase Agreement) and (d) certain specified fixed assets, furniture and fixtures.
The closing of the BioSteel Canada Transaction is subject to customary closing conditions and an order of the
Overview of BioSteel Manufacturing Transaction
Pursuant to the BioSteel Manufacturing Purchase Agreement, BioSteel Manufacturing has agreed to sell substantially all of the assets of BioSteel Manufacturing, including: (a) the property, plant and equipment and other fixed assets listed in the exhibits to the BioSteel Manufacturing Purchase Agreement; (b) all inventories of BioSteel Manufacturing, including spare parts located at the leased facility located in
The closing of the BioSteel Manufacturing Transaction is conditional upon, among other things, (i) an assignment of the lease agreement in respect of the Property (to the extent that another resolution is not reached with the landlord), and (ii) orders of the
Contact:
Email: media@canopygrowth.com
Email: Tyler.Burns@canopygrowth.com
About
Beyond our world-class products,
Notice Regarding Forward Looking Statements
This news release contains 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and 'forward-looking information' within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'estimates', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements and uncertainties include statements with respect to the closing of the Sale Transactions; the expected proceeds of the Sale Transactions and the resulting improvements to the Company's balance sheet.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including BioSteel's ability to complete the Sale Transactions; risks relating to the CCAA process, including uncertainty of any residual value for BioSteel's stakeholders under the CCAA process; negative operating cash flow; uncertainty of additional financing; use of proceeds; volatility in the price of the Company's common shares; inherent uncertainty associated with projections; expectations regarding future investment, growth and expansion of operations; regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial and stock markets and the impacts of increased rates of inflation; legal and regulatory risks inherent in the cannabis industry, including the global regulatory landscape and enforcement related to cannabis; additional dilution; political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the cannabis industry and such other risks contained in the public filings of the Company filed with Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com and with the
In respect of the forward-looking statements and information, the Company has provided such statements and information in reliance on certain assumptions that they believe are reasonable at this time. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Should one or more of the foregoing risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
(C) 2023 Electronic News Publishing, source