Mr. Luc Mongeau reports

CANOPY GROWTH TO STRENGTHEN BALANCE SHEET WITH EARLY PREPAYMENTS SET TO REDUCE TERM LOAN BY US$50 MILLION; ANNUAL CASH INTEREST EXPENSE EXPECTED TO BE REDUCED BY US$6.5 MILLION

Canopy Growth Corp. has entered into an agreement with certain of its lenders to make three prepayments that are expected to reduce the company's senior secured term loan by $50-million (U.S.) by March 31, 2026. The agreement was entered into in order to facilitate the Acreage Holdings Inc. financing (as defined below).

Under the terms of the agreement, Canopy Growth agreed to make the following prepayments under the term loan: (i) $25-million (U.S.) at par on or about July 31, 2025; (ii) $10-million (U.S.) at par on or prior to Dec. 31, 2025; and (iii) $15-million (U.S.) at par on or prior to March 31, 2026. When completed, the prepayments are expected to reduce the company's interest expense under the term loan by approximately $6.5-million (U.S.) on an annualized basis.

"These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense," said Luc Mongeau, chief executive officer. "Reducing debt is essential to creating the financial flexibility Canopy Growth's needs to drive sustainable growth now and in the future."

In connection with the agreement, Canopy USA LLC obtained consent from the company in order for Canopy USA to secure an additional $22-million (U.S.) in financing for Acreage and its subsidiaries. The Acreage financing consent required the consent of the lenders.

About Canopy Growth Corp.

Canopy Growth is a world-leading cannabis 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 Tweed, 7Acres, Doja, Deep Space and Claybourne, as well as category-defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Germany, Poland and Australia.

Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC (tetrahydrocannabinol) market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA's portfolio includes ownership of Acreage, a vertically integrated multistate cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness LLC, The Cima Group LLC, and Mountain High Products LLC, a leading North American edibles brand, and majority ownership of Lemurian Inc., a California-based producer of high-quality cannabis extracts and clean vape technology.

At Canopy Growth, the company is shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use and a focus on enhancing communities, the company is paving the way for a better understanding of all that cannabis can offer.

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