Canopy Growth Corp. has completed an all-cash deal for a majority stake in BioSteel Sports Nutrition Inc. as the marijuana company seeks to expand its product offering.
“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,” Canopy CEO Mark Zekulin said in a statement Wednesday.
“We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business,” he added.
No terms were provided, though Canopy will own 72% of BioSteel, with an agreed upon path to complete ownership. Paradigm Capital Inc. was BioSteel’s financial adviser.
BioSteel was founded in 2009, with the Ontario-based company now carrying multiple brand ambassadors including NHL Hall of Famer Wayne Gretzky and current Dallas Cowboys star Ezekiel Elliott.
Elliott’s deal with BioSteel “allows them to activate the star running back as the leading endorser of CBD products once permitted by the NFL. To date no active player has been able to do so,” according to the statement.