Mr. Bruce Linton reports

CONSTELLATION BRANDS TO INVEST $5 BILLION CAD [$4 BILLION USD] IN CANOPY GROWTH TO ESTABLISH TRANSFORMATIVE GLOBAL POSITION AND ALIGNMENT

Constellation Brands, a leading beverage alcohol company, and Canopy Growth Corp. have expanded their strategic partnership to position Canopy Growth as the global leader in cannabis production, branding, intellectual property and retailing.

Constellation Brands will increase its ownership interest in Canopy Growth by acquiring 104.5 million shares directly from Canopy Growth, thereby achieving approximately 38-per-cent ownership when assuming exercise of the existing Constellation warrants. Constellation Brands is acquiring the new shares at a price of $48.60 per share, which is a 37.9-per-cent premium to Canopy's five-day volume-weighted average price of the common shares on the Toronto Stock Exchange and a 51.2-per-cent premium to the closing price on Aug. 14, 2018. Constellation will also receive additional warrants of Canopy that, if exercised, would provide for at least an additional $4.5-billion to Canopy Growth.

As a result of the new shares Constellation is acquiring, Canopy Growth will immediately upon closing have proceeds of approximately $5-billion ($4-billion (U.S.)) to bolster its leadership position in the global cannabis industry. This investment, the largest to date in the cannabis space, will provide funds which Canopy Growth will deploy to strategically build and/or acquire key assets needed to establish global scale in the nearly 30 countries pursuing a federally permissible medical cannabis program, while also rapidly laying the global foundation needed for new recreational cannabis markets. Canopy Growth's Canadian platform does not require additional cannabis cultivation assets, and management views other jurisdictions, including the United States, as strategic priorities requiring significant capital.

"Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner," said Rob Sands, chief executive officer, Constellation Brands. "Over the past year, we've come to better understand the cannabis market, the tremendous growth opportunity it presents and Canopy's market-leading capabilities in this space. We look forward to supporting Canopy as they extend their recognized global leadership position in the medical and recreational cannabis space."

Canopy Growth will benefit from Constellation's deep understanding of consumer trends and shifting preferences, and proven ability to translate those insights into distinct brand positionings that build strong connections with consumers and foster brand loyalty. Constellation's disciplined approach and capabilities in areas such as mergers and acquisitions, finance, large-scale production, marketing, and sales as a leading Fortune 500 company, combined with Canopy's entrepreneurial approach and best-in-class knowledge and expertise within the emerging cannabis sector, create a powerful combination that will ensure Canopy Growth is set up for sustainable, long-term success as the company and sector evolve.

Founded in 2013, Canopy Growth has cemented itself as the industry leader in Canada's legal cannabis market. Through its subsidiaries Tweed and Spectrum Cannabis, Canopy Growth has established a global presence in 11 countries which is driven by product innovation, a robust intellectual property portfolio, and clinical research programs targeting both human and animal health. In Canada, Canopy Growth has established sophisticated operations to support recreational sales by raising capital and making the strategic investments required to maintain and accelerate its market leadership position at a critical time in the company's evolution. Substantial capital is required to fully capitalize on Canopy Growth's market-leading position in Canada and establish similar leading positions in markets around the globe.

"Our business can now make the strategic investments required to accelerate our market position globally," said Bruce Linton, chairman and co-CEO, Canopy Growth. "Constellation's concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and M&A, will be a huge benefit as we look to expand our portfolio in Canada, the United States and emerging cannabis markets around the globe. We view this investment in our business as an endorsement of our execution since forming our initial strategic relationship in October, 2017."

As part of the proposed transaction, Constellation will nominate four directors to Canopy Growth's seven-member board of directors, chaired by Mr. Linton. Canopy Growth will remain a proudly Canadian publicly traded company headquartered in Smiths Falls, Ont., Canada, and will continue to be led by its existing management team, which will continue to manage all international cannabis operations.

As part of its investment, Constellation is receiving 139.7 million new warrants which are exercisable over the next three years. Of those, 88.5 million are exercisable at a price per share of $50.40, a 43.0-per-cent premium to Canopy's VWAP, and 51.3 million are exercisable at the VWAP at the time of exercise. If Constellation were to exercise all existing and new warrants, its ownership would exceed 50 per cent.

Canopy Growth's future plans include pursuing various product formats in all cannabis channels. Both companies have no plans to sell cannabis products in any market unless it is permissible to do so at all applicable government levels. Canopy Growth remains committed to not entering the U.S. market in any manner that would contravene U.S. federal laws.

Constellation expects to account for its investment under the equity accounting method. As such, the transaction is expected to be accretive to the company's full year diluted earnings per share in fiscal 2021. In addition, Constellation Brands remains committed to its investment grade rating and therefore has no plans to engage in mergers, acquisitions or share repurchase activity until the company returns to its 3.5 times leverage target, which is expected to occur within 18 to 24 months of deal closing.

The transaction is subject to customary closing conditions, including Canopy shareholder approval and applicable Canadian government and regulatory approvals, and is expected to close by the end of October, 2018. Goldman Sachs advised Constellation Brands and Bank of America Merrill Lynch is providing committed financing for this transaction. Greenhill & Co. Canada Ltd. acted as exclusive financial adviser to Canopy Growth. Kingsdale Advisors is acting as strategic shareholder communications adviser and proxy solicitation agent to Canopy Growth.

Canopy Growth shareholders should contact Kingsdale Advisors at 1-877-657-5857 or collect outside North America at 1-416-867-2272 or by e-mail at contactus@kingsdaleadvisors.com.

Mr. Linton and Mr. Sands will provide further commentary on this expanded partnership at the beginning of Canopy Growth's earnings call to be held today at 8 a.m. ET.

Webcast information

A live audio webcast will be available on-line.

Calling information

Toll-free dial-in number:  1-888-231-8191

International dial-in number:  647-427-7450

Conference ID:  4984819

Replay information

A replay of the call will be accessible by telephone until 11:59 p.m. ET on Nov. 13, 2018.

Toll-free dial-in number:  1-855-859-2056

Replay password:  4984819

About Canopy Growth Corp.

Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Through its wholly owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over half a million square feet of GMP-certified indoor and greenhouse production capacity, all to an unparalleled level of quality assurance procedures and testing. Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents.

We seek Safe Harbor.