Mr. David Klein reports

CANOPY GROWTH COMPLETES SALE OF HERSHEY DRIVE FACILITY

Canopy Growth Corp. has completed the sale of its Hershey Drive facility in Smiths Falls, Ont., in connection with the previously announced agreement with Hershey Canada Inc. for cash consideration of approximately $53-million.

As part of its transformation to a simplified, asset-light operating model, Canopy Growth has sold a total of seven properties for aggregate gross proceeds of approximately $155-million since April 1, 2023. It is anticipated that net proceeds received from the sale of the facility will be used primarily to pay down the company's senior secured credit facility.

"The closing of the Hershey Drive facility sale further demonstrates our focus and resolve to complete our transformation to a simplified, asset-light operating model while continuing to improve our liquidity position and enhance our balance sheet," said David Klein, chief executive officer of Canopy Growth. "Our ability to be nimble and brand-focused has ensured that Canopy Growth is well positioned to succeed in the North American cannabis market."

The sale of the facility follows the centralization of postharvest manufacturing at the company's former beverage facility in Smiths Falls, Ont., as well as the consolidation of all flower cultivation in the company's purpose-built sites in Kincardine, Ont., and Kelowna, B.C.

About Canopy Growth Corp.

Canopy Growth is a leading North American cannabis and consumer packaged goods (CPG) 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. Canopy Growth's CPG portfolio features 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 United States tetrahydrocannabinol market through its rights to Acreage Holdings Inc., 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 a 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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