RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New Press Release - Canopy Growth Announces that BioSteel Obtains Court Approval of Successful Bids in Sale and Investment Solicitation ProcessColoradobuff wrote: Agree it was a good move.
question for you: how troubling is it that you have a former cfo in Klein running canopy and he didn't catch that biosteel was vampiricly draining the company? I have always stated as soon as he got hired he needed to slash and burn.
Klein would not have done the financial review himself and whichever team did the work would have relied (to some degree) on the forecasting numbers provided by BioSteel.
My understanding is that the major drain on BioSteel (thereby Canopy) came from ongoing sponsorship payments to NFL players to promote the brand.
I expect the BioSteel team projected much higher sales in a shorter timeframe than what turned out to be reality.
Klein didn't takie this lightly and I seen statements where he noted potential legal action to get to the bottom of it all. Since I seen those articles awhile back I am thinking it has been reviewed and no legal recourse was available (my speculation).
BioSteel may have over estimated and provided inaccurate forecasting that didn't align well with what came to be however that is not grounds for legal action, it was simply poor foresight.
Regardless of how it came to be we now see Canopy getting to the end of their corrective action and removing that drain on the operation. The press release implies cash going back to canopys bottom line, how much isn't made public yet.
The whole experience was unfortunate for all involved but we're now seeing it shift to the rearview mirror.