We reiterate our Buy rating, while lowering our PT to C$3 (from C$9). 1Q'24 Recap: Canopy reported net sales of C$108.7mn (cons. C$90.3mn), up 24% sequentially. Importantly, adjusted EBITDA was -C$57.8mn (cons. -C $61.9mn), an improvement from -C$95.6mn in 4Q. Adjusted gross was +5% (17% ex. (11% ex, BioSteel). BioSteel, led the topline beat with C$32.5 in revenue (from C$19.3mn in 4Q). However, the brand remained a profitability drag (-24% gross margin from -119% in 4Q), representing 60% of the consolidated EBITDA loss. Canopy indicated a willingness to divest BioSteel to reduce drag and focus on core cannabis. Guidance for breakeven EBITDA profitability (ex. BioSteel) was reiterated with the remaining C$100mn in cost savings to offset the quarterly ~C$25mn EBITDA loss (ex. BioSteel).