Mr. Bruce Linton reports

CANOPY GROWTH SECURES $5.5 MILLION IN LOAN FACILITIES

Canopy Growth Corp. has closed a $5.5-million financing with a commercial lending institution. The two facilities, which will be used to refinance building construction and for expenditures related to the purchase of capital equipment, are the second financing agreement that the institution has entered into with Canopy Growth. The three facilities total approximately $7-million.

"These new facilities strengthen our financial position and enable Canopy Growth to continue driving forward an aggressive expansion of our operations that we believe is necessary to help meet future cannabis market demand," said Bruce Linton, chairman and chief executive officer of Canopy Growth. "We are very pleased with this second round of financing seeing as it is the first time that the commercial lender has entered into multiple credit agreements with a licensed producer. We believe it signals a strong belief in the strength of Canopy Growth's current and future potential business."

The new financing comprises two separate loan facilities: a term loan and a revolving line of credit. The five-year term loan is for approximately $3.5-million and is provided on commercial terms. The revolving loan, in the amount of $2-million, bears a variable interest rate based on the Canadian Imperial Bank of Commerce prime rate with a five-year term and interest-only payments.

The financing is secured by a first-charge mortgage on the Tweed Farms property, a first position on a Tweed Farms general security agreement and a specific security interest, backed by a corporate guaranty from Canopy Growth.

Mr. Linton commented, "Management believes it is appropriate and necessary to fund continued investment in our business in order to capitalize on Canadian and international opportunities in a timely fashion, all the while considering the potential impact of key future developments in our sector, including pending changes to the marijuana for medical purposes regulations (MMPR) in response to the Allard decision, which are expected to be introduced by Aug. 24, 2016; the tabling of recommendations by the federal government's marijuana legalization task force, which is expected in November, 2016; and the introduction of marijuana legalization legislation, which is expected to happen by the spring of 2017."

The first regulatory change on the horizon is expected this month when the Canadian government is likely to announce changes to the MMPR in response to the decision rendered on Feb. 24, 2016, by the federal court in the case of Allard et al. versus Canada. The company believes that the legislative changes are likely to result in the government permitting patients to grow medical marijuana for their own use. While such changes may result in a material adverse change to the company and sector, Canopy remains committed to an expansion of capacity that appropriately invests in the future of the cannabis sector.

We seek Safe Harbor.