Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 215

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 8
Chunk 215
---
ation of $nil and $nil, respectively (three and nine months ended December 31, 2023 - gain on deconsolidation of $12,417 and loss on deconsolidation of $9,820, respectively).Investment in BioSteel EntitiesThe CCAA Proceedings for the BioSteel Entities have been completed. Canopy Growth continues to have a 100% ownership interest in each of BioSteel US and BioSteel Manufacturing but has deconsolidated both entities because it no longer has a controlling interest in them. Since the estimated amount of the liabilities of BioSteel US and BioSteel Manufacturing exceeds the estimated fair value of the assets available for distribution to its creditors, the fair value of Canopy Growth's equity investment in BioSteel US and BioSteel Manufacturing approximates zero.Canopy Growth's Amounts Receivable from BioSteel EntitiesPrior to Canopy Growth's deconsolidation of BioSteel Canada, Canopy Growth made significant secured loans to BioSteel Canada for purposes of funding its operations. The secured loans and corresponding interest were considered intercompany transactions and eliminated in Canopy Growth's consolidated financial statements prior to September 14, 2023, being the deconsolidation date. As of the deconsolidation date, the secured loans and corresponding interest are now considered related party transactions and have been recognized in Canopy Growth's consolidated financial statements at their estimated fair value of $29,000. As of the deconsolidation date for BioSteel US and BioSteel Manufacturing, Canopy Growth has recorded remaining amounts legally receivable from BioSteel US and BioSteel Manufacturing at their estimated fair value.The remaining amounts legally receivable from the BioSteel Entities are measured at their expected recoverable amounts. As of December 31, 2024, the receivable balance from the BioSteel Entities is $nil. The assets and liabilities related to the BioSteel Entities business units are classified as discontinued operations and the major categories are as follows:

        December 31,

        March 31,

        2024

        2024

        Receivable from BioSteel Entities
         
        $
        -

        $
        8,038

        Total assets of discontinued operations
         
        $
        -

        $
        8,038

        Total liabilities of discontinued operations
         
        $
        -

        $
        -

5.  LOSS ON ASSET IMPAIRMENT AND RESTRUCTURING In the three months ended December 31, 2024, the Company recorded a loss on asset impairment and