Canopy Growth Announces Exchanges with Holders of Approximately US$198 Million of Convertible Notes SMITHS FALLS, ONTARIO (

Canopy Growth Announces Exchanges with Holders of Approximately US$198 Million of Convertible Notes

SMITHS FALLS, ONTARIO (June 29, 2022) Canopy Growth Corporation ( Canopy Growth or the Company )

(TSX: WEED) (NASDAQ: CGC) announced today that it has entered into privately negotiated exchange agreements (collectively, the Exchange Agreements ) with a limited number of holders (the Noteholders ), including

Constellation Brands, Inc. ( CBI ) through its wholly-owned subsidiary Greenstar Canada Investment Limited Partnership ( GCILP ), of the Company s outstanding 4.25% unsecured convertible senior notes due 2023

(the Notes ), to acquire approximately C$255.4 million (approximately USD$198 million) aggregate principal amount of the Notes from the Noteholders (the Transaction ) in exchange for common shares of the

Company (the Canopy Shares ) and approximately C$3 million (USD$2.35 million) in cash for accrued and unpaid interest (the Cash Payment ).

GCILP, a subsidiary of CBI (together Constellation ), is participating in the Transaction and will acquire a minimum of 21,929,914 Canopy

Shares and up to 30,701,880 Canopy Shares pursuant to its Exchange Agreement.

In accordance with the terms of the Exchange Agreements, Canopy Growth has agreed to acquire the Notes from the Noteholders for an aggregate purchase price

(excluding accrued and unpaid interest which will be paid in cash as part of the Cash Payment) of approximately C$252.8 million (approximately USD$196 million) (the Purchase Price ), which will be payable in such number of

Canopy Shares (the Share Consideration ) as is equal to the Purchase Price divided by the volume-weighted average trading price (the VWAP ) of the Canopy Shares on the Nasdaq Global Select Market (the

Nasdaq ) for the 10 consecutive trading days beginning on, and including, June 30, 2022 (the Averaging Price and such period of time being the Averaging Period ), subject to a floor price

of US$2.50 (the Floor Price ) and a maximum price equal to US$3.50, which is the closing price of the Canopy Shares on the Nasdaq on June 29, 2022 (the Market Price ).

The Share Consideration, for Noteholders other than GCILP, will be satisfied by the issuance of Canopy Shares in up to two tranches as follows: (a) on

the initial closing of the Transaction, anticipated to be June 30, 2022, 34,073,160 Canopy Shares (the Initial Closing Shares ) will be issued to the Noteholders; and (b) in the event that the Averaging Price calculated

over the Averaging Period is less than the Market Price, on or about July 18, 2022 (the Final Closing ), up to such number of Canopy Shares as is equal to the excess of the Purchase Price divided by the Averaging Price over

the Initial Closing Shares. The Share Consideration for GCILP will be issued solely on the Final Closing based on the Averaging Price.

In the event that the daily VWAP of the Canopy Shares on the Nasdaq during the Averaging Period

(a) exceeds the Market Price, then the daily VWAP for such trading day will instead be deemed to be the Market Price; or (b) is less than the Floor Price, then the daily VWAP for such trading day will instead be deemed to be the Floor

Price, such that in no circumstances will more than 78,404,305 Canopy Shares be issuable pursuant to the Transaction.

The Notes were issued pursuant to

an indenture dated June 20, 2018, among the Company, GLAS Trust Company LLC ( GLAS Trust ), as U.S. trustee, and Computershare Trust Company of Canada, as Canadian trustee, as supplemented by supplement no. 1 to the indenture

dated April 30, 2019 and supplement no. 2 to the indenture dated June 29, 2022 (collectively, the Indenture ). As a result of supplement no. 2 to the Indenture dated June 29, 2022 between the Company, Computershare

Trust Company, N.A. (as replacement U.S. trustee following GLAS Trust s resignation) and Computershare Trust Company of Canada (the Second Supplemental Indenture ), the Company irrevocably surrendered its right to settle the

conversion of any Note by Physical Settlement or Combination Settlement (as each such term is defined in the Indenture). As a result, the conversion of any Note on or after the date hereof will be settled by Cash Settlement (as such term is defined

in the Indenture) and in no event will any Canopy Shares be issuable upon conversion of any Note. A copy of the Second Supplemental Indenture will be available on the Company s SEDAR profile page at www.sedar.com and on EDGAR at

GCILP currently holds C$200 million aggregate principal amount of Notes. Pursuant to the Transaction, the Company will acquire

C$100 million (approximately USD$77.5 million) aggregate principal amount of the Notes held by GCILP. GCILP will be issued a number of Canopy Shares based on the VWAP during the Averaging Period, provided that GCILP will receive a minimum of

21,929,914 Canopy Shares (based on the Floor Price) and a maximum of 30,701,880 (based on the Market Price), representing between 5.4% and 7.6% of the issued and outstanding Canopy Shares on a

Constellation, though GCILP and CBG Holdings LLC, currently holds 142,253,802 Canopy Shares,

representing 35.3% of the issued and outstanding Canopy Shares on a non-diluted basis. GCILP s participation in the Transaction (the Insider Participation ) will be considered to be a

related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ( MI 61-101 ). Pursuant to Section 5.5(a) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a formal valuation and minority approval of the

Company s shareholders with respect to the Insider Participation as the fair market value of the Transaction is below 25% of the Company s market capitalization as determined in accordance with MI

61-101. In addition, the Transaction was approved by the board of directors of the Company with Ms. Judy A. Schmeling, a director of CBI, Mr. Garth Hankinson, Chief Financial Officer and

Executive Vice President of CBI, Mr. Robert Hanson, Executive Vice President and President Wine & Spirits Division of CBI and James Sabia, Executive Vice President and President Beer Division of CBI, each having disclosed

their interest in the Transaction by virtue of their positions with CBI and abstaining from voting thereon.

The Transactions are being conducted as

private placements, and any Canopy Shares to be issued in the Transaction will be issued pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended (the Securities Act ), afforded by

Section 4(a)(2) of the Securities Act in transactions not involving any public offering. This press release is neither an offer to sell nor a solicitation of an offer to buy any securities described above, nor will there be any offer,

solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Canopy Growth (TSX:WEED, NASDAQ:CGC) is a world-leading diversified cannabis and cannabinoid-based consumer product company, driven by a passion to improve

lives, end prohibition, and strengthen communities by unleashing the full potential of cannabis. Leveraging consumer insights and innovation, Canopy Growth offers product varieties in high-quality dried flower, oil, softgel capsule, infused

beverage, edible, and topical formats, as well as vaporizer devices by Canopy Growth and industry-leader Storz & Bickel. Canopy Growth s global medical brand, Spectrum Therapeutics, sells a range of full-spectrum products using its

colour-coded classification system and is a market leader in both Canada and Germany. Through Canopy Growth s award-winning Tweed and Tokyo Smoke banners, Canopy Growth reaches its adult-use consumers and

has built a loyal following by focusing on top quality products and meaningful customer relationships. Canopy Growth has entered into the health and wellness consumer space in key markets including Canada, the United States, and Europe through

BioSteel sports nutrition, and This Works skin and sleep solutions; and has introduced additional hemp derived CBD products to the United States through its First & Free and Martha Stewart CBD brands. Canopy Growth has an established

partnership with Fortune 500 alcohol leader Constellation Brands.

Senior Manager, Communications

Director, Investor Relations

Forward-Looking Information

This news release contains forward-looking statements within the meaning of the United States Private

Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of

words such as plans , expects or does not expect , is expected , estimates , intends , anticipates or does not anticipate , or believes , or

variations of such words and phrases or state that certain actions, events or results may , could , would , might or will be taken, occur or be achieved. Forward-looking statements or

information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or

achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements and uncertainties include statements with respect to the benefits of the debt repurchase, the anticipated

date of issuance of the Initial Closing Shares, the anticipated date of the issuance of any additional Canopy Shares following the Averaging Period and expectations for other economic, business, and/or competitive factors.

Risks, uncertainties and other factors involved with forward-looking information could cause actual

events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including inherent uncertainty associated with projections; the diversion of management time on

Transaction-related issues; expectations regarding future investment, growth and expansion of operations; regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial and stock

markets and the impacts of increased rates of inflation; legal and regulatory risks inherent in the cannabis industry, including the global regulatory landscape and enforcement related to cannabis, political risks and risks relating to regulatory

change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the cannabis industry; and such other risks

contained in the public filings of the Company filed with Canadian securities regulators and available under the Company s profile on SEDAR at www.sedar.com and with the United States Securities and Exchange Commission through EDGAR at

www.sec.gov/edgar, including the Company s annual report on Form 10-K for the year ended March 31, 2022.

In respect of the forward-looking statements and information, the Company has provided such statements and information in reliance on certain assumptions

that they believe are reasonable at this time. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should

not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Should one or more of the foregoing risks or uncertainties materialize, or should assumptions underlying the

forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks,

uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The forward-looking information and forward-looking statements included in this

news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise

unless required by applicable securities laws.