Canopy Growth Reports Third Quarter Fiscal 2020 Financial Results Generated $124 million Net Revenue, up from $76 million in Q2 2020 Excluding portfolio restructuring charges in Q2 2020, Net Revenue up 13% Achieved Gross

Canopy Growth Reports Third Quarter Fiscal

2020 Financial Results

Generated $124 million

Net Revenue, up from $76 million in Q2 2020

Excluding portfolio restructuring charges in Q2 2020, Net Revenue up 13%

Achieved Gross Margin of 34%

Total Operating Expenses down 14% versus the prior quarter

Adjusted EBITDA loss decreases to $92 million

SMITHS FALLS, ON, Feb. 14, 2020 /CNW/ - Canopy

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

results for the third quarter ended December 31, 2019. All financial information in this press release is reported in millions

of Canadian dollars, unless otherwise indicated.

Third Quarter Fiscal 2020 Corporate Financial

Revenues: Reported Net Revenues increased 62% over

Q2 2020, or 13% excluding the impact of portfolio restructuring charges. Gross Recreational B2B revenue increased 8% over prior

quarter due, in part, to over 140 stores becoming active in the quarter and higher sales of premium dried flower and pre-roll joints.

Our acquired businesses including Storz & Bickel and This Works also performed well, contributing to organic growth this quarter.

Gross margin: Gross margin before fair value impacts

was 34%. Gross margin performance in quarter benefited from lower period costs due to higher facility utilization

Operating expenses: Total operating expenses decreased

14% versus Q2 2020 primarily due to a $20 million reduction in G&A expenses and over $31 million lower stock-based compensation

versus the prior quarter

Adjusted EBITDA: Adjusted EBITDA loss of $92 million,

a $64 million narrower loss versus Q2 2020 driven by higher sales, improved gross margins and lower operating expenses

Cash Position: Gross cash balance was $2.3 billion,

down from $2.7 billion in Q2 2020, reflecting the EBITDA loss, capital investments and M&A

Third Quarter Fiscal 2020 Business &

Operational Highlights

Maintained leading market share in retail, at an estimated

22%, of the Canadian recreation market as we saw a strong demand for both premium and value priced dried flower and pre-rolled

Continued market share gains and increase in the number

of patients, to over 76,700, in the Canadian medical cannabis market

Named David Klein as new Chief Executive Officer

Completed first shipments of cannabis-infused edible chocolates

and JUJU Power 510 batteries in December 2019

Storz & Bickel expanded product line with launch of

Crafty+ vaporizer in November 2019

Announced initial line of First & Free Hemp-derived

CBD products and began sales online through www.firstandfree.com, one quarter ahead of Q4 2020 target

"In Q3 we executed across Canada, in our

international markets and in our strategic acquisitions to drive revenue growth," said David Klein, CEO. "We have a lot

of work to do. We are eager to capitalize on the opportunity to create an unassailable position through a tight focus on

the consumer and on critical markets."

"We delivered significant gross improvement

in the third quarter driven by stronger revenues and higher capacity utilization. Actions taken earlier this year are expected

to meaningfully reduce stock-based compensation in FY21, and we have started to implement tighter cost controls across the organization,"

said Mike Lee, EVP & CFO. "We plan to take further steps to reduce our costs and right-size our business to ensure that

we can generate a healthy margin profile and cash generation in the coming years."

Recreational B2B sales increased 8% over Q2 2020, due to

over 140 stores becoming active in the quarter and higher sales of premium dried flower and pre-roll joints

Recreational B2C sales increased 16% over prior quarter,

due in part to an 11% increase in same store sales

Medical sales increased 5% over the prior quarter primarily

attributable to the broadening of our brand and product offerings, including the availability of products from additional CraftGrow

partners, as well as an increase in number of customers to over 76,700.

International Cannabis

C3 revenue increased 5% over Q2 2020

Germany cannabis sales higher than expected due to opportunistic

sales into the German market to fill a supply gap that resulted from a regulatory enforced sales halt of cannabis products offered

Strategic Acquisitions

Storz & Bickel vaporizer revenue increased 46% over

Q2 2020 due to solid organic growth and seasonal sales

This Works revenue increased 42% over prior quarter due

to strong organic growth

Gross margin percentage, before fair value

impacts in cost of sales, a non-IFRS measure, is a key operational metric that does not have any standardized meaning prescribed

by IFRS and may not be comparable to similar measures presented by other companies. This measure is calculated as net revenue

less inventory production costs expensed to cost of sales, divided by net revenue, and may be computed from the consolidated statements

of operations presented within this news release.

Adjusted EBITDA, a non-IFRS measure, is a key

operational metric that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures

presented by other companies. Adjusted EBITDA is calculated as earnings before interest, tax, depreciation and amortization, share-based

compensation expense, fair value changes and other non-cash items, and further adjusted to remove acquisition-related costs. The

Company attributes Adjusted EBITDA to its operations and corporate overhead, strategic investments and business developments, and

non-operating or under-utilized facilities. The Adjusted EBITDA reconciliation is presented within this news release and explained

in Management's Discussion & Analysis under "Adjusted EBITDA (Non-IFRS Measure)", a copy of which will be filed on

Free Cash Flow, a non-IFRS measure, is a key

operational metric that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures

presented by other companies. This measure is calculated as net cash provided by (used in) operating activities less purchases

and deposits of property, plant and equipment.

Transition to U.S. GAAP Reporting

As part of our U.S. financial reporting requirements,

Canopy Growth confirmed that, as of September 30, 2019, it no longer met the criteria for qualification as a foreign private issuer

because (1) more than 50% of the outstanding voting securities are held by residents of the United States, and (2) the majority

of Canopy Growth's directors are United States citizens.

Therefore, as of April 1, 2020 Canopy Growth

will be considered a United States domestic issuer and a large accelerated filer. As a result of this change, as of April 1, 2020,

Canopy Growth will be required to prepare its consolidated financial statements, including the Company's March 31, 2020 audited

annual consolidated financial statements, in conformity with United States generally accounting principles, with such change being

applied retrospectively. The extent of the impact of this change in accounting framework has not yet been quantified. Canopy Growth

will also be required to provide an auditor attestation report under Section 404(b) of the Sarbanes-Oxley Act.

This press release is intended to be read in

conjunction with the Company's Unaudited Condensed Interim Consolidated Financial Statements ("Financial Statements) and Management

Discussion & Analysis ("MD&A) for the three and nine months ended December 31, 2019, which will be filed on SEDAR