Canadian cannabis firm Canopy Growth Corp. (WEED) says it will re-file three previous quarterly statements and its annual report due to “material misstatements.”
The Smiths Falls, Ontario-based company said the quarterly statements and annual report “should no longer be relied upon” after discovering problematic statements related to its BioSteel sports drink business unit.
Specifically, Canopy Growth is re-filing its financial statements for its 2022 first-quarter, second-quarter and third-quarter results, as well as its audited statements for the fiscal year ended 2022 after a review of its BioSteel operations uncovered accounting errors.
Canopy Growth also said it cannot provide investors with assurances that other accounting errors will not be identified or impact the company’s previous financial statements.
The BioSteel sports drink unit generated $44.6 million in sales for Canopy Growth in fiscal 2022, an increase of 56% from the previous year.
Canopy Growth acquired a 72% stake in BioSteel Sports Nutrition in 2019 that has been valued at $50.7 million.
BioSteel has endorsement deals with dozens of professional athletes, including NFL quarterback Patrick Mahomes and NHL star Connor McDavid.
Canopy Growth has struggled with declining sales and internal reorganizations over the past few years.
The stock of Canopy Growth has declined 80% in the last 12 months and is currently trading at $1.39 per share.
