Cannabis Giant Canopy Growth Cuts Ties With Sports Nutrition Products Maker: Here's Why
Portfolio Pulse from Jelena Martinovic
Canopy Growth Corporation (NASDAQ:CGC) has announced it will no longer fund BioSteel Sports Nutrition Inc., a business unit that represented about 60% of the company's Q1 FY2024 adjusted EBITDA loss. The company is exploring strategic alternatives for BioSteel, including a potential sale. This move is part of Canopy's strategy to streamline operations and cut costs.
September 14, 2023 | 3:05 pm
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Canopy Growth's decision to stop funding BioSteel, which represented a significant portion of its Q1 FY2024 EBITDA loss, could be seen as a positive move by investors. This could potentially lead to a short-term increase in the company's stock price.
The decision to stop funding BioSteel, a loss-making unit, could be seen as a positive move by investors as it shows the company's commitment to streamlining operations and cutting costs. This could potentially lead to a short-term increase in the company's stock price.
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