As the cannabis industry continues to struggle post-legalization, major licensed producers are looking for new ways to diversify their offerings to bring in more revenue.
Moving further into the nutritional side of the market, Canopy Growth Corporation (TSX: WEED; NYSE: CGC) today completed an all-cash transaction to acquire a 72% stake in BioSteel Sports Nutrition Inc., with the two companies agreeing to bump that up to 100% in the future.
BioSteel Sports is primarily known for the company’s #DrinkThePink hydration mix marketed towards professional athletes, along with an extensive line of protein isolate products.
Aside from allowing Canopy to enter the sports hydration and protein markets, the company is expected to begin infusing sports and energy products with hemp-based CBD to take advantage of the continuing cannabidiol craze in the U.S.
Commenting on that possibility after the majority stake acquisition was finalized this morning, Canopy Growth’s Chief Executive Officer Mark Zekulin stated:
The Canadian cannabis industry is currently gearing up for the game changing shift toward licensed sales of edibles and infused beverage products.
While regulations for edibles have been issued by Health Canada, products aren’t currently expected to hit shelves until mid-December, and a delay into the new year is becoming increasingly likely.
In other recent Canopy Growth news, the company inked a U.S. vaporizer distribution deal with Greenlane Holdings Inc (NASDAQ: GNLN) back in August. That deal may see significantly diminished returns in light of a continued vape-related health scare that has resulted in 12 lung disease deaths in the United States.
While the Centers For Disease Control and Prevention have stated most confirmed cases involved the usage of non-licensed THC products, all vape sales across the board have dropped significantly in recent months.
Pivoting to a bigger focus on medical patients in Canada, Canopy also launched a medical training program last month in conjunction with the Santé Cannabis clinic / research centre.