Canopy Growth Corporation Reports First Quarter Fiscal 2019 Financial Results Continued revenue acceleration with total first quarter revenue of $25.9 million representing a 63% increase over the quarter ended

Canopy Growth Corporation Reports First

Quarter Fiscal 2019 Financial Results

Continued revenue acceleration with total

first quarter revenue of $25.9 million representing a 63% increase over the quarter ended June 30, 2017 and a 14% increase over

revenues of $22.8 million in the fourth quarter of fiscal 2018;

Continued price appreciation with average

selling price per gram of $8.94 for the first quarter, as compared to $7.96 last year in the same quarter and $8.43 in the fourth

quarter of fiscal 2018;

Continued leadership in the Canadian medical

cannabis sector with over 85,000 patients and launch of innovative Spectrum Cannabis colour-coded Soft-gels providing consistent

and discrete dosing formats and further reinforcing the unique Spectrum product system;

Spectrum Cannabis' global operational footprint

now covers 11 countries with key additions in Czech Republic, Columbia and Lesotho; completed transfer of high-quality medical

cannabis from Germany to Czech Republic for distribution to pharmacies;

Now wholly-owned subsidiary, Canopy Health

Innovations ("CHI"), received approval to conduct Phase IIb "in-human" clinical trials to evaluate the use

of medical cannabis in the treatment of insomnia, trials are first in planned series of trials to investigate and quantify the

therapeutic effect of cannabis and cannabinoids in humans;

Canopy Animal Health, a division of CHI,

received approval to research the effectiveness of cannabidiol to treat anxiety in certain animals;

Multi-year supply agreement commitments,

with annualized delivery requirements of over 67,000 kiliograms, or an estimated 36% of the total supply committed1

to date to provinces and territories;

Inventory of approximately 19,721 kilograms

of dry cannabis, 14,895 litres of cannabis oils and 1,055 kilograms of softgel capsules at quarter end;

Value of biological assets more than doubled

to $52.8 million, inline with Company plan to increase future inventory levels to help address expected Canadian and international

market demand and benefiting from investments over prior quarters that have more than tripled the Company's licensed footprint

Added private "brick & mortar"

and online cannabis retail licenses in Manitoba, and Saskatchewan, to existing licenses in Newfoundland and Labrador; and

Completed oversubscribed convertible Senior

Note offering, participated in by an affiliate of Constellation Brands as well as institutional investors in the United States,

Europe and Canada, that raised gross proceeds of $600 million.

SMITHS FALLS, ON, Aug. 14, 2018 /CNW/ - Canopy

Growth Corporation (TSX: WEED) (NYSE: CGC) ("Canopy Growth" or "the Company") today released its consolidated

financial results for the first quarter fiscal 2019 ended June 30, 2018. All financial information in this press release is reported

in Canadian dollars, unless otherwise indicated.

"With our unparalleled success in Canada

and Europe, Spectrum Cannabis' expanding global operational footprint now covering 11 countries, our active regulatory and global

market development efforts, as well as approvals to proceed with the first of many planned clinical trials of cannabis-based medical

therapies for both humans and animals, our leadership position in international medical cannabis markets continues to strengthen,"

said Bruce Linton, Chairman and Co-CEO.

Added Linton, "With an estimated 36% of

the total supply committed to date to the provinces and territories, we have secured by far the deepest channel into the Canadian

recreational cannabis market. Considering our substantial inventory, large cultivation footprint in production and the millions

of additional sq. ft. of greenhouses and our new state-of-the-art distribution centre that are ready and waiting for licenses,

we remain very confident in our ability to succeed in capturing significant market share."

Concluded Linton, "To drive our brand

down to main street Canada and capture retail margin, we successfully invested in securing Tweed cannabis store licenses in Newfoundland

and Labrador, Manitoba and Saskatchewan and we expect to leverage these successes in Alberta as well as in the anticipated private

retail framework in Ontario. Canopy is developing the leading private cannabis retail channel in Canada."

First Quarter 2019 Highlights

Company continues to invest significant effort and resources

across all business areas in preparation for the recreational market. Activities included the development, construction and licensing

of large greenhouse cultivation platforms in BC, Quebec and Ontario, the development of a regional distribution centre with highly

efficient automation of product packaging, securing recreational cannabis supply commitments to provinces and territories, building

product inventories, the development of new permitted product SKUs including pre-rolled form factors, the development of recreational

product packaging, the development of cannabis retail and education programs and the development of the Tweed retail store concept

and rollout strategy

Total first quarter revenue was $25.9 million representing

a 63% increase over the quarter ended June 30, 2017 when revenue totaled $15.9 million and a 14% increase over revenues of $22.8

million in the fourth quarter of fiscal 2018

2,695 kilograms and kilogram equivalents sold in the first

quarter ended June 30, 2018, representing an increase of 47% over the first quarter of last year, and an increase of 7% over the

fourth quarter of fiscal 2018 in which 2,528 kilograms and kilogram equivalents were sold

Oil sales, including softgel capsules, accounted for 26%

of first quarter product revenue (reported revenue net of merchandise revenue, clinic revenue and shipping fees). Oil sales in

the first quarter accounted for 2,650 liters (or approximately 330 kilogram equivalents) of the kilogram and kilogram equivalents

Cannabis sales in Germany accounted for 14% of product

revenue in the first quarter as compared to 2% in the same quarter last year

Average selling price per gram was $8.94 for the first

quarter, as compared to $7.96 last year in the same quarter and $8.43 in the fourth quarter of fiscal 2018

Spektrum Cannabis sold 248 kilograms in Germany at an average

selling price of $13.62 per gram, up from 175 kilograms at an average selling price of $13.35 per gram in the fourth quarter of

fiscal 2018, representing quarter over quarter growth of 42% and 2% respectively

Harvested 9,685 kilograms in the first quarter as compared

to 4,811 kilograms in the fourth quarter of fiscal 2018 and 5,575 kilograms in the first quarter of fiscal 2018

At quarter end the Company held inventory of 19,721 kilograms

of dry cannabis, 14,895 litres of cannabis oils, ranging from concentrated resins, or refined oil, to finished oil, and 1,055 kilograms

of softgel capsules. Inventories are continuing to be scaled to meet management's expectation of market demands, including the

legalized recreational market expected later in calendar 2018

The Company closed the issuance of 4.25% convertible notes

amounting to $600 million in gross proceeds, including exercise of an overallotment by the initial purchasers. The transaction

was significantly over-subscribed and included the participation by Greenstar Canada Investment Limited Partnership, an affiliate

of Constellation Brands, Inc. for $200 million, and the remainder of the offering was allocated exclusively to institutions, primarily

in the United States, Europe, as well as Canada

Acquired Annabis Medical s.r.o ("Annabis Medical"),

a medical cannabis distributor in the Czech Republic and Daddy Cann Lesotho PTY Ltd., a Lesotho-based company licensed to cultivate,

manufacture, supply, hold, import, export and transport cannabis and its resin

Subsequent to First Quarter Fiscal 2019

Completed the acquisition of unowned interests in Canopy

Health Innovations and BC Tweed, making them wholly-owned subsidiaries of the Company

Alberta and BC supply agreements signed, doubling annualized

supply requirement to over 67,000 kg per year.

Formed wholly-owned subsidiary Canopy LATAM Corporation

("Canopy LATAM") and through Canopy LATAM acquired Spectrum Cannabis Colombia S.A.S., which previously operated as Colombian

Cannabis S.A.S., expanding the Company's focus on the emerging medical cannabis market of Latin America

Announced proposed acquisition of Hiku Brands to strengthen

the Company's portfolio of cannabis brands and advanced retail platform including branded Tokyo Smoke stores. The transaction is