Canopy Growth Further Improves Balance Sheet with Early Prepayment to Reduce Term Loan by US$100 Million and Ensures Maturity Extension to at Least December 2026

SMITHS FALLS, ONTARIO [Oct 17, 2024] – Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ: CGC), a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, announced today that it has made an early prepayment under its senior secured term loan (the "Term Loan") in an aggregate principal amount equal to US$100 million at a discounted price of US$97.5 million. This proactive move, which in addition to reducing the Company's leverage results in annualized interest expense savings of approximately US$14 million, underscores the Company's strong commitment to fiscal discipline and further strengthens its financial position as it continues to execute on its strategic priorities.

As previously announced in August 2024, this prepayment was agreed to between the Company and its senior lenders as part of a series of amendments to the Term Loan (the "Term Loan Amendment"), which, among other things, included an extension of the Term Loan's maturity date to December 18, 2026. Pursuant to the Term Loan Amendment, the Company has the option to make an additional prepayment equal to US$100 million at a discounted price of US$97.5 million by March 31, 2025 (the "Second Prepayment"). If payment of the Second Prepayment is made, the maturity date of the Term Loan will automatically further extend to September 18, 2027.

Judy Hong, CFO of Canopy Growth, commented: "This early prepayment reflects our ongoing commitment to reducing cash burn and strengthening our capital structure. Our proactive steps to reduce debt and extend maturity enhance our balance sheet flexibility to invest in growth areas and drive long-term value creation for our shareholders."

The early prepayment of the Term Loan demonstrates Canopy Growth's continued focus on reducing debt and improving its balance sheet, positioning the Company for sustainable growth in the evolving global cannabis market.

About Canopy Growth

Canopy Growth is a world leading cannabis company dedicated to unleashing the power of cannabis to improve lives. Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space, in addition to 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. THC market through an unconsolidated, non-controlling interest in Canopy USA, LLC ("Canopy USA"). Canopy USA has closed the acquisitions of approximately 75% of the shares of Lemurian, Inc. ("Jetty") and 100% of the entities that make up Wana Brands ("Wana"). Jetty owns and operates Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, and Wana is a leading North American edibles brand. The option to acquire Acreage Holdings, Inc., a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast and Midwest, has also been exercised.

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.