Mr. David Klein reports

CANOPY GROWTH ANNOUNCES PRODUCTION OPTIMIZATION PLAN IN CANADA

Canopy Growth Corp. plans to close its facilities in Aldergrove and Delta, B.C., resulting in the elimination of approximately 500 positions. In addition, the company no longer plans to bring a third greenhouse on line in Niagara-on-the-Lake, Ont. These actions are part of the company's effort to align supply and demand while improving production efficiencies over time.

The greenhouses in British Columbia account for approximately three million square feet of licensed production space and were put into commission, beginning in February, 2018, after a period of phased retrofitting to help Canopy Growth scale up to supply the new Canadian adult-use market. Nearly 17 months after the creation of the legal adult-use market, the Canadian recreational market has developed slower than anticipated, creating working capital and profitability challenges across the industry. Additionally, federal regulations permitting outdoor cultivation were introduced after the company made significant investments in greenhouse production. The company now operates an outdoor production site to allow for more cost-effective cultivation, which will play an important role in meeting demand on certain products that rely on cannabis extracts. Following an organizational strategic review of production capacity and forecasted demand, the company announced today that these facilities in Aldergrove and Delta, B.C., are no longer essential to its cultivation footprint.

"When I joined Canopy Growth earlier this year, I committed to focusing the business and aligning its resources to meet the needs of our consumers," shared Canopy Growth chief executive officer David Klein. "Today's decision moves us in this direction and, although the decision to close these facilities was not taken lightly, we know this is a necessary step to ensure that we maintain our leadership position for the long term. Along with the rest of the management team, I want to sincerely thank the members of the team affected by this decision for their work and commitment to building Canopy Growth."

Along with this announcement, the company expects, based upon information currently available to management, to record estimated pretax charges of approximately $700-million to $800-million in the quarter ending March 31, 2020, reflecting today's announcement, as well as additional changes related to its organizational and strategic review.

All figures reported above with respect to the quarter ending March 31, 2020, are preliminary and are unaudited and subject to change and adjustment as the company prepares its consolidated financial statements for the year ending March 31, 2020. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. The company does not intend to provide preliminary results in the future.

About Canopy Growth Corp.

Canopy Growth is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and softgel capsule forms, as well as medical devices through Canopy Growth's subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.

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