Page 1

CANOPY GROWTH UNLEASHING THE POWER OF CANNABIS SMITHS FALLS , ON , November 5 , 2021 / PRNewswire / - Canopy Growth Corporation ( " Canopy Growth " or the " Company " ) ( TSX : WEED ) ( NASDAQ : CGC ) today announces its financial results for the second quarter fiscal 2022 ended September 30 , 2021. All financial information in this press release is reported in Canadian dollars , unless otherwise indicated . ● CANOPY GROWTH REPORTS SECOND QUARTER FISCAL 2022 FINANCIAL RESULTS Highlights Announced plan to acquire the # 1 edibles company in North America , Wana Brands , upon U.S. THC permissibility further strengthening U.S. ecosystem . Delivered a robust innovative new product pipeline with over 40+ new SKUs launching globally during Q2 FY2022 . Launched whisl , an innovative CBD vape designed for mood management , through an exclusive partnership with Circle - K in the U.S. Net revenue declined by 3 % in Q2 FY2022 versus Q2 FY2021 . Maintained market leadership position in premium flower category and increased market share in vapes and edibles during Q2 FY2022 across tracked Canadian recreational cannabis market . Pushing out positive Adjusted EBITDA target due to Canada supply challenges and a delayed revenue ramp in the U.S .; taking a number of actions to improve Canadian performance and remain optimistic about the mid - to long - term outlook . " In new industries where the potential is immense , progress is rarely a straight line . With a focused strategy , a foundation for growth , and our burgeoning U.S. ecosystem , Canopy is uniquely positioned to win as the industry matures . " David Klein , Chief Executive Officer , Canopy Growth Corporation " Achieving profitability remains a top priority . We are focused on increasing market share in Canada , premiumizing our product mix and delivering on our cost savings commitment . ' Mike Lee , Chief Financial Officer , Canopy Growth Corporation Second Quarter Fiscal 2022 Financial Summary ( in millions of Canadian \ dollars , unaudited ) Reported vs. Q2 FY2021 Net Revenue $ 131.4 ( 3 % ) Gross margin percentage ( 54 % ) ( 7,300 ) bps Adjusted gross margin percentage¹ 2 Adjusted EBITDA is a non - GAAP measure . See " Non - GAAP Measures " . 3 Free cash flow is a non - GAAP measure . See " Non - GAAP Measures " . ( 52 % ) ( 7,100 ) bps Net loss $ ( 16.3 ) 83 % Adjusted EBITDA² $ ( 162.6 ) ( 90 % ) ¹ Adjusted gross margin is a non - GAAP measure , and for Q2 fiscal 2022 excludes $ 3.1 million related to the flow - through of inventory step - up associated with the acquisition of Supreme Cannabis ( Q2 FY2021 - excludes $ 0.3 million related to the flow - through of inventory step - up associated with fiscal 2020 business combinations ) . See " Non - GAAP Measures " . Free cash flow³ $ ( 101.3 ) 47 % 1