Mr. Bruce Linton reports

CANOPY GROWTH CORPORATION AND BEDROCAN CANADA LAUNCH BRAZIL JOINT VENTURE

Canopy Growth Corp. has closed an agreement with Sao Paulo-based Entourage Phytolab SA, which will see its wholly owned subsidiary Bedrocan Canada Inc., Bedrocan International BV (formerly Bedrocan Beheer BV) and local Brazilian partners create a new company called Bedrocan Brazil SA, which will facilitate the importation of Bedrocan's proprietary standardized cannabis varieties and know-how into the Brazilian market. Additionally, Canopy Growth will partner with Entourage to develop cannabis-based pharmaceutical medical products for the Brazilian and international markets.

Bedrocan Brazil will hold the sole local rights to use the Bedrocan brand, as well as the genetic material and cultivation technology of Bedrocan in Brazil. Initially, Bedrocan Brazil will import cannabis products into Brazil from Canada or the Netherlands, with a view to eventually establishing domestic cultivation facilities in Brazil.

"We are extremely excited to be launching this initiative to bring Bedrocan's world-leading cannabis genetics to patients in a market with a population in excess of 200 million," said Marc Wayne, president of Bedrocan Canada. "The team that comprises Bedrocan Brazil is well positioned to succeed. They have established themselves as legitimate players with the technical expertise required to advance Bedrocan's globally recognized medical cannabis brand and world-leading cultivation technology in Brazil."

In addition, Canopy Growth will partner with Entourage to use the medical cannabis provided by Bedrocan Brazil to develop innovative medical cannabis products for the Brazilian and international markets. Entourage will be responsible for developing the standardized cannabis extracts for preclinical and clinical trials. It is anticipated that product clinical trials will begin in 2016 and be completed by the end of 2017, targeting submission for market approval by Anvisa, the Brazilian health surveillance agency, by 2018.

Entourage has obtained authorization from Anvisa for the research and development of cannabis-based therapeutics, and has the ability to import cannabis flowers into Brazil for research and development purposes.

Through in-depth market research and patient outreach, Entourage has developed an unmatched understanding of the needs of Brazilian patients and looks forward to serving those needs with world-class products. Brazilians currently import their medical cannabis products from other jurisdictions, this partnership will eventually allow Brazilians to access their medication more efficiently by moving the production inside Brazil's borders.

"Brazil represents a large emerging market, and has a favourable regulatory framework for medical cannabis products as well as competitive clinical trial and production costs, and for those reasons it's a perfect market for the Bedrocan brand," said Bruce Linton, chairman and chief executive officer of Canopy Growth. "Through the Bedrocan International and Canopy Growth partnership, we've developed a unique offering of expertise here in Canada that's now recognized around the world, an advantage we will leverage as we continue to pursue global markets."

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