Canopy Growth Corp (CGC): restructuring charge — Canopy Growth ceases BioSteel funding; BioSteel files for creditor protection

Canopy Growth Corp

BioSteel entered CCAA creditor protection; Canopy Growth ceased funding, cutting ~60% of Q1 FY2024 Adj. EBITDA loss.
Expected total charges: CDN$15-20M exit costs and CDN$100-130M asset impairment in Q2 FY2024.
Annual cash savings estimated at >CDN$100M from eliminating BioSteel cash burn.
Reaffirms target of positive Adjusted EBITDA across remaining business units exiting FY2024.
Reduced debt by CAD$349M since July 1, 2023; sold Hershey Drive facility for CAD$53M.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.95

Canopy Growth Corp announced a restructuring with charges of The Company expects to incur charges of between CDN$15-20 million, of which the Company expects approximately CDN$3.7 million will consist of payroll-related ch affecting BioSteel Sports Nutrition Inc. and its affiliates (terminating, effective, as applicable, commencing September 14, 2023 and on an ongoing basis, 181 employees who were emp).

Type: restructuring
Charge: The Company expects to incur charges of between CDN$15-20 million, of which the Company expects approximately CDN$3.7 million will consist of payroll-related ch
Affected area: BioSteel Sports Nutrition Inc. and its affiliates
Headcount: terminating, effective, as applicable, commencing September 14, 2023 and on an ongoing basis, 181 employees who were emp

Exact text from the filing

the entire workforce thereof was employed by the Company and will receive termination benefits and severance, as applicable. The Company expects to incur charges of between CDN$15-20 million, of which the Company expects approximately CDN$3.7 million will consist of payroll-related charges to be paid by the Company or Canopy Growth USA. The remaining

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.95

Canopy Growth Corp announced a impairment with charges of the Company expects to incur an asset impairment charge of between approximately CDN$100-$130 million in the second quarter of fiscal year 2024 under generally affecting BioSteel Entities.

Type: impairment
Charge: the Company expects to incur an asset impairment charge of between approximately CDN$100-$130 million in the second quarter of fiscal year 2024 under generally
Affected area: BioSteel Entities

Exact text from the filing

In conjunction with the CCAA process, the Company expects to incur an asset impairment charge of between approximately CDN$100-$130 million in the second quarter of fiscal year 2024 under generally accepted accounting principles.

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3 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

Canopy Growth Corp filing history →

Source: SEC EDGAR

accession 0001104659-23-100636

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