Canopy Growth Corporation Reports Second Quarter Fiscal 2019 Financial Results The Company secured a strategic $5 billion investment from Fortune 500 beverage leader Constellation Brands Since October 1, Company SKUs obt

Canopy Growth Corporation Reports Second

Quarter Fiscal 2019 Financial Results

The Company secured a strategic $5 billion investment

from Fortune 500 beverage leader Constellation Brands

Since October 1, Company SKUs obtained over 30% listings

market share1 in multi-store physical retail store networks nationwide, strategic phase 2 rollout of value added products

including edible Softgels and pre-rolled joints expected to increase market share

Acquisition of Canopy Health Innovations and announced

plan to acquire ebbu Inc. reinforces the Company's commitment to owned IP; Company completed or acquired over 120 patent filings

across hardware, product formulation, genetics, production innovation, and medical treatments

Company completed first of a kind US Drug Enforcement

Agency permitted import into the United States of Canopy Softgel products for research purposes

Registered medical patients increased by 34% year-over-year

to an industry leading 84,400 patients, while second quarter revenue came in as planned with staging for the third quarter launch

of the recreational market in Canada

The Company is very well positioned with the inventories,

supply chain logistics and automation in place, and capacity coming on-line to support market demand

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

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

financial results for the second quarter fiscal 2019 ended September 30, 2018. All financial information in this press release

is reported in Canadian dollars, unless otherwise indicated.

During the quarter, Canopy Growth secured capital

via a strategic $5 billion investment from Fortune 500 beverage leader Constellation Brands, which closed subsequent to the quarter.

These funds will be deployed towards the Company's core strategic objectives of (i) intellectual property development, and (ii)

replicating the Company's Canadian platform for success across a large number of international markets. These objectives will

be achieved through international acquisitions as well as continued internal investments across the globe, and are discussed in

further detail below.

Second Quarter Fiscal 2019 Revenue Highlights

Sales in the second quarter were in line with

management's expectations leading into the opening of the recreational cannabis market. Revenue for the second quarter fiscal 2019

was $23.3 million, representing an increase of 33% over the prior year's quarter in which revenue was $17.6 million. As planned,

the Company made only limited "test" shipments of $0.7 million into recreational channels during the second quarter to

confirm supply chain systems functionality before the launch of recreational cannabis on October 17.

Oils, including the Company's Softgel capsules,

accounted for 34% and 18%, in the respective second quarters of fiscal 2019 and 2018, of the product revenue for each period, demonstrating

an increased demand for value-added products that require lower active ingredient inputs and provide higher margins.

Second Quarter Fiscal 2019 Product Sales

During the second quarter of fiscal 2019 ended

September 30, 2018, the Company sold 2,197 kilograms and kilogram equivalents at an average sale price of $9.87, up from 2,020

kilograms and kilogram equivalents at an average price of $7.99 in the prior year period, representing an increase of 9% and 24%

respectively. The higher average price was due to changes in the mix of product sold, principally a higher percentage of Softgel

sales and sales to Germany.

Year-to-date, the Company has sold 4,892 kilograms

and kilogram equivalents at an average sale price of $9.36, up from 3,850 kilograms and kilogram equivalents at an average price

of $7.98 in the prior year period, representing an increase of 27% and 17% respectively.

Canadian Regulated Adult Use Market -

As has been previously disclosed, the Company

ended the second quarter with supply commitments to provinces and territories of 70,000 kg, not including Ontario. The Company

remains on track to meet all commitments on an annualized basis, and is working closely with all provincial and territorial partners

to address supply shortages faced across the country, including improvements to the Company's own SKU offering and overall availability

for all partners. To this end, as compared to the October 17-31 period, the average number of kilograms shipped on a daily basis

to provincial and territorial partners during the period November 1-12 has more than doubled.

Having built up sufficient inventory, the Company

has also now begun shipping value-add products including its Softgels capsules to certain provinces with more to follow in the

coming weeks, expanding its offering as initial competitor offerings begin to decline in the market. The Softgels will be followed

shortly by pre-rolled joints produced on patent pending equipment designed and created by the Canopy Engineering Team to meet global

standards and throughput with no third party royalties or dependencies.

Canadian Regulated Adult Use Market -

Canopy Growth finalized its acquisition of

HIKU during the second quarter, adding the Tokyo Smoke retail network on top of its Tweed stores. Offering distinct consumer experiences

will allow the Company to appeal to various consumer demographics without saturating any single market. Tokyo Smoke operates three

retail cannabis stores today in Winnipeg and plans to add 12 additional stores in provinces that support private retail by September

2019. Tweed retail now has 8 locations selling cannabis today across Newfoundland and Manitoba and an e-commerce presence in Manitoba

and Nunavut. By September 2019, Tweed plans to add 20 additional brick and mortar shops in provinces with private retail models.

Yet to be defined provincial models may provide opportunities for further expansion.

Management Commentary

"With extensive investments over the past

year, including most notably in the second quarter, in branding and retail development, our entrance into the retail cannabis market

has been a success with our SKU assortment obtaining over 30% listings market share in multi-store physical retail store networks

nationwide. With substantial product inventories on hand, new product formats coming to market as planned, a captive sales force

driving increased demand through physical retail stores and increasing internal and channel efficiencies, we believe based on market

conditions today that we will attain significant and sustainable market share of the Canadian recreational market," Bruce

Linton, Chairman & Co-CEO, Canopy Growth.

"With business opportunities expanding

globally, we continue to make significant investments in building our international team and footprint including through multiple

acquisitions in Latin America completed during the quarter. The completion of, to our knowledge, a world first Canadian export

of a US federally legal DEA permitted product, and the announced acquisition of US federally legal hemp R&D specialists, ebbu,

are critical stepping stones for our broader entrance into the US market when it is federally-permissible to do so," concluded

"With global management infrastructure

in place, the Company is building an international platform in order to drive medical market growth, which will in turn drive innovation

applicable to recreational cannabis markets. This approach requires large-scale production capacity, value-add processing, diversified

intellectual property, and clinical research - all things we have prioritized and invested heavily into this past quarter."

Update on Canadian Capacity Expansion

and Facilities Milestones

During the quarter and subsequently, the Company

has continued to advance its stated objective of 5.6 million square feet of production across Canada, receiving licenses for almost

2.0 million square feet of production space. With over 4.3 million sq. ft. of licenced capacity, the Company continues to see new

growing areas brought online as facilities are loaded up incrementally. As each facility comes online, the Company continues to

mark major milestones, including the transfer of over 10,700 kilograms from the BC Tweed facilities in a single transfer during

Through use of advanced inspection technologies,

proprietary modifications, and further development of in-house expertise, the Company has increased total Softgel production capacity

to several million per week. This represents a 10 fold increase over the same period last year. Construction of advanced manufacturing

facilities built to GMP standards as well as distribution infrastructure continues a the 1 Hershey Drive Smiths Falls campus.

Commissioning of patent-pending automated pre-roll

production lines; large scale dried bud and oil pre-pack systems; and automated fulfillment and shipping systems have also significantly

increased operating efficiencies in order to build inventory and deliver on commitments nationwide.

Update on Core Pillar of Intellectual

Property Development

During the second quarter Canopy Health Innovations