BioSteel bankruptcy: Cannabis company investing in sports drink brand ceases funding, actively looking for new buyer

BioSteel has filed for creditor protection in the U.S. and Canada, and is trying to find a buyer for the business, its owner announced.

Canopy Growth, which is the largest cannabis company in North America, announced in a press release it has ceased funding in the sports drink.

Not only did it cease funding, but BioSteel has commenced proceedings under the Companies Creditors Arrangement Act. Going under the CCAA allows the company to seek the court's help to protect them from creditors.

The decision to go into CCAA is because the company "no longer has access to funding for the brand which continued to generate negative operating cash flow."

A company statement advised:

"BioSteel made the decision to conserve cash and put the business into hibernation to preserve its assets. BioSteel sought creditor protection under the CCAA to conduct a court-supervised sale process for its business and property for the benefit of its stakeholders."

BioSteel was founded in 2009 by a Canadian entrepreneur as well as former NHL player Mike Cammalleri.

BioSteel has partnered with the likes of Connor McDavid, Nathan MacKinnon, John Tavares and Connor Bedard, among other NHL, NBA, and NFL players.

BioSteel holds NHL camp

Along with being a company, BioSteel athletes get together in the summer for a hockey camp to help prepare for the upcoming season.

Just recently, the BioSteel camp took place with some of the names mentioned above and other NHL players.

After spending time with Connor McDavid at the BioSteel NHL camp, Connor Bedard quickly realized just how good the Edmonton Oilers star is. He told reporters on a video call:

“Obviously (McDavid’s stats are on) a different level. I don’t want to say (it’s a level) humans can’t achieve — you never want to be like ‘I can’t do this.’ I don’t really think that mindset is that great. He’s kind of the pinnacle right now and you’re like, ‘this guy’s the best — how can I get closer to him?...'

"He’s obviously unbelievable. And you can barely talk about his stats because they’re so ridiculous. But for me, it’s just kind of trying to be my own player and be the best that I can be.”

Whether or not the BioSteel NHL camp will continue next season in some form under a different company remains to be seen. However, BioSteel's filing for bankruptcy will have some impact on the NHL players who are sponsored by the company.