Cannabis Briefs for September 19, 2023
September 19, 2023•Following a note in a recent earnings report that Canopy Growth was seeking to sell its CBD sports drink BioSteel “in order to remove the cash burden as quickly as possible,” the company announced it has ceased funding the brand. The BioSteel subsidiary company has commenced proceedings in Canada under the Companies’ Creditors Arrangement Act and will file under Chapter 15 of the U.S. Bankruptcy Code. Canopy Growth blamed the division for accounting for 60% of its Q1 adjusted EBITDA loss. “While BioSteel’s business has shown significant year-over-year revenue growth, and we believe the brand remains an attractive asset, it does not align with Canopy Growth’s cannabis focused asset-light strategy. We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and positioned to be a leader in the North American cannabis sector,” said Canopy CEO David Klein.
•New products are on the horizon in New Jersey following a decision by regulators to relax restrictions on infused food and drink. As originally drafted in 2021, the state’s Cannabis Regulatory Commission forbade the sale of edibles that resemble food, instead allowing only non-perishable products like lozenges and gummies. That’s set to change following a recent proposal that would expand the rules to include food products. Finalization could take another six months, but regulators will be allowed to begin approving new products immediately.
•Louisville, Colorado-based Charlotte’s Web has appointed Bill Morachnick as CEO. As part of the hire he has also joined the medical cannabis company’s board of directors. Morachnick was previously president of Santa Fe Reynolds Tobacco International, a division of Reynolds American, from 2006 to 2016, and ultimately oversaw its purchase by Japan Tobacco Group for $5 billion. He replaces Jacques Tortoroli as CEO, who has chosen to leave the company.
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