I was made aware of the Biosteel early in its history by my hockey sports agent friend, but the Canadian sports nutrition brand didn’t pop up in any of my content until October 2019 when the fully integrated cannabis company Canopy Growth Corporation paid $51 million to acquire 72% majority control. If you've seen Biosteel in the headlines recently, it's due to an ongoing SEC investigation surrounding the hydration company following improper revenue recognition standards that caused “material misstatements” in its financial reporting by overstating around $24 million in revenue within the last two fiscal years. While these accounting issues are "what" happened, I want to additionally explore possible "whys" that include a number of Biosteel underlying forces, sports drink market dynamics, and strategic decisions. This includes covering details around why the initial Canopy Growth M&A intent became challenged, how Biosteel pivoted hard into beverages with the help of Constellaton Brands, and the huge marketing costs accumulated by playing the game Gatorade invented/mastered and BodyArmor emulated (while PRIME is winning by playing another game). Finally, I'll breakdown what comes next...which includes huge cost cutting initiatives if they want to survive long enough to eventually leverage their cannabis market advantage against the major beverage companies that will one day be available in the U.S. market.

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