Ms. Judy Hong reports

CANOPY GROWTH ANNOUNCES COMPLETION OF CONVERSIONS PURSUANT TO US$100 MILLION CONVERTIBLE DEBENTURES; PROVIDES UPDATE ON BALANCE SHEET ACTIONS TAKEN TO DATE

All conversions pursuant to Canopy Growth Corp.'s $100-million (U.S.) senior unsecured convertible debentures sold to an institutional investor in February, 2023, have been completed.

Since the beginning of fiscal 2023, Canopy Growth has completed numerous balance sheet actions to strengthen its financial position while implementing a business transformation plan with the goal of improving profitability. In addition to today's announcement that preserves liquidity, the balance sheet actions completed by the company to date include:

• Equitization of $263-million of the 4.25 per cent unsecured notes due in July, 2023;
• Paydown of $188-million (U.S.) (or 25 per cent of the principal) of the senior secured term loan at 93 cents per dollar of debt;
• Refinanced $100-million of the 4.25 per cent unsecured notes due in July, 2023, held by Greenstar Canada Investment Limited Partnership, a wholly owned subsidiary of Constellation Brands Inc., to extend the maturity date to Dec. 31, 2024;
• Generated $81-million in cash proceeds during the most recent fiscal quarter from the disposition of five facilities with additional agreements in place to generate up to $150-million in total proceeds by Sept. 30 of this year.

"Today's announcement underscores our continued commitment to deleveraging and strengthening Canopy Growth's financial position," said Judy Hong, chief financial officer, Canopy Growth. "When paired with our ongoing cost reduction program in Canada, which is on track to achieve $240-million to $310-million in total savings by March, 2024, we are well positioned to achieve improved profitability, enhance financial flexibility and support long-term value creation."

The company is also undertaking a review of additional strategic options to further improve liquidity and minimize cash burn.

About Canopy Growth Corp.

Canopy Growth is a leading North American cannabis and consumer packaged goods company dedicated to unleashing the power of cannabis to improve lives.

Through an unwavering commitment to its consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands, including Doja, 7Acres, Tweed and Deep Space. Its CPG portfolio features sugar-free sports hydration brand BioSteel, targeted 24-hour skin care and wellness solutions from This Works, gourmet wellness products by Martha Stewart CBD, and category-defining vaporizer technology made in Germany by Storz & Bickel.

Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. tetrahydrocannabinol market through its rights to Acreage Holdings, a vertically integrated multistate cannabis operator with principal operations in densely populated states across the northeast, as well as Wana Brands, a leading cannabis edibles brand in North America, and Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology.

Beyond its world-class products, Canopy Growth is leading the industry forward through a commitment to social equity, responsible use and community reinvestment -- pioneering a future where cannabis is understood and welcomed for its potential to help achieve greater well-being and life enhancement.

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