BioSteel, a sports drink company, has sought creditor protection in both the United States and Canada as it endeavors to locate a buyer for its business 

Canopy Growth, the largest cannabis company in North America, has stopped funding BioSteel Sports Nutrition Inc., leading to this decision 

Companies opt for the Companies Creditors Arrangement Act (CCAA) when they need court assistance to safeguard their interests from creditors while restructuring or winding down operations 

Founded in Toronto in 2009, BioSteel gained prominence through marketing agreements with numerous NHL, NBA, and NFL teams and notable athletes like Connor McDavid, Nathan MacKinnon, and John Tavares 

Canopy Growth acquired BioSteel in 2019 with the intent to diversify its product line into beverages, a strategy that hasn't yielded the expected results 

BioSteel filed for CCAA protection due to a lack of funding, resulting in negative operating cash flow, necessitating a court-supervised sale process 

Canopy Growth invested approximately $366 million in BioSteel since the acquisition, with the company burning through about $15 million in cash monthly 

Cutting off BioSteel is seen as a positive move for Canopy Growth's finances, as the sports drink company was responsible for 60% of its financial losses in the current fiscal year 

The insolvency filing will lead to the layoff of around 181 BioSteel employees, while the fate of the remaining workforce remains uncertain