Canopy Growth Acquires Majority Stake In BioSteel Sports Nutrition
(RTTNews) - Canadian marijuana company Canopy Growth Corp. said Wednesday that it has completed an all-cash transaction to acquire a majority stake in BioSteel Sports Nutrition Inc., a producer of sports nutrition products.
The transaction gives Canopy Growth a 72 percent stake in BioSteel with an agreed upon path to full ownership. Financial terms of the transaction were not disclosed.
The acquisition of Bio Steel provides Canopy Growth with a significant platform to enter the sports nutrition and hydration segment.
It also lays the groundwork for adoption of cannabidiol or CBD in future product offerings in accordance with regulations globally, including products to be sold in the U.S. containing CBD sourced from federally permissible industrial hemp.
CBD is a naturally-occurring cannabinoid constituent of cannabis. It is a chemical in the marijuana plant often used for medicinal purposes, and does not have the intoxicating effects like those caused by tetrahydrocannabinol or THC.
Mark Zekulin, CEO of Canopy Growth said, "This acquisition allows us to enter the sports nutrition space with a strong and growing brand as we continue towards a regulated market of food and beverage products that contain cannabis. We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business."
BioSteel was founded in 2009. However, the company's origins date back to 2005, when the first non-commercial version of its Sports Hydration Mix #DrinkThePink, was created.
The company's product offerings include the Sports Hydration Mix #DrinkThePink, whey and plant-based proteins, everyday essentials such as sports greens, vitamins, and collagen, in addition to performance supplements and merchandise.
BioSteel products have been purchased by more than 70 percent of the teams in North America's four major sports leagues.
The brand's ambassadors include Ezekiel Elliott of the Dallas Cowboys; Connor McDavid of the Edmonton Oilers; WTA player Eugenie Bouchard, and Andrew Wiggins with the Minnesota Timberwolves, among others.
BioSteel also has national organizational partnerships with USA Hockey, Canada Basketball, Athletics Canada and the Professional Hockey Players Association. The company has more than 10,000 points of distribution in Canada and the U.S. and continues to expand in both markets as well as into Europe.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.