The BioSteel BamBoozled Bufoonery......So AFTER this mess was made public, that AFTER ONLY three years since acquiring the floudering operation, it has now entered BK & receivership and has been a TOTAL flop for Canopy. Something which the folks over at Canopy seem to be doing on a regular basis & business as usual. So another day & another one DOWN the toilet drain...........Nothing new to see here so please move along!
IF only it were THAT simple.........LOL
BUT.......inquiring minds want to KNOW, they want to know the "inimate" details and just how bad this was. Well, to get an idea on JUST "how bad" this was for Canopy, you'll have to go back in time, In the MichaelJ/Doc & Delorian style, three years back, when the orginal investment was made! And when you eventually get there, you'll see that Canopy paid about $55M usd for that wonderful "interest" in Biosteel.
So what does all this mean? Well, since Biosteel is pretty much BK, insolvent, over & done, and Canopy will stop funding it completely..........it will get chopped into little tiny bits and sold piece-meal.......to some vulture fund acquirer for pennies on the original investment. So i strongly doubt that Canopy will get/recover ANY significant amount for a fire/bk sale from this. I would be surprised if they get more than $5M........which is total peanuts.
As for those inquiring minds, what will be the net effect on sales? Well, last count the Biosteel division accounted for about $40Musd in annual sales or about $10M per quarter. Which of course is NO longer there........
So for the next quater expect more writedowns, lower sales, more losses and a much smaller company......
You guys still believe the company is worth over $2B? I strongly suggest you think deeply about it & reflect on that little fact!
Like i've mentioned before, there is still "some" value left there, but not in the equity, that's worthless, it's all in the folks who hold the DEBT!
GLTA