Canopy Growth to Cease Funding BioSteel Business Unit Furthering Business Transformation and Focus on North American Cannabis Leadership BioSteel filing immediately eliminates significant cash burn for Canopy Growth and

Canopy Growth to Cease Funding BioSteel Business

Unit Furthering Business Transformation and Focus on North American Cannabis Leadership

BioSteel filing immediately eliminates significant

cash burn for Canopy Growth and provides for an

orderly realization of value of BioSteel's assets through a sale process

As the senior secured lender to BioSteel, Canopy

Growth expects to recover proceeds from the anticipated sale process

reaffirms its expectation to achieve positive Adjusted EBITDA in all remaining business units exiting FY2024, as the Company focuses

on driving growth in its Canadian and U.S. cannabis businesses to position itself as an industry leader in North America

FALLS, ON - September 14, 2023 - Canopy Growth Corporation ("Canopy Growth" or the "Company")

(TSX: WEED) (NASDAQ: CGC) today announced that it has ceased funding BioSteel Sports Nutrition

Inc. ("BioSteel") and that BioSteel has commenced proceedings under the Companies' Creditors Arrangement Act (the

"CCAA") in the Ontario Superior Court of Justice (Commercial List) ("CCAA Court") and will seek recognition of

that proceeding under Chapter 15 of the United States Bankruptcy Code to give full force and effect to the orders made in the CCAA proceeding

in the United States, including a stay of proceedings.

part of its efforts to simplify its business and reduce cash burn, Canopy Growth previously announced that it was reviewing strategic

options for the Company's BioSteel business unit, including a potential sale of the business unit. BioSteel's business was

a significant drag on Canopy Growth's profitability and cash flow, representing approximately 60% of the Company's Q1 FY2024

Adjusted EBITDA loss. The decision by BioSteel to seek creditor protection means that Canopy Growth will limit the further funding obligations

in respect of the BioSteel business unit, which is consistent with Canopy Growth's transformation to a simplified, asset-light

operating model and focus on its core cannabis operations.

Growth's financial position is expected to be further strengthened through the immediate removal of the cash expenditures associated

with funding the BioSteel business unit and the potential cash proceeds from the orderly sale of BioSteel's assets. Further, the

Company anticipates the removal of the previously identified material weakness related to the BioSteel business segment upon disposition.

In addition, with BioSteel's operating loss and cash burn eliminated, Canopy Growth

reiterates its expectation to achieve positive Adjusted EBITDA across its remaining business units exiting FY2024.

Growth has marked yet another major milestone in our transformation plan, as while BioSteel's business has shown significant year-over-year

revenue growth, and we believe the brand remains an attractive asset, it does not align with Canopy Growth's cannabis focused asset-light

strategy. We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and

positioned to be a leader in the North American cannabis sector," said David Klein, Chief Executive Officer.

Transformation Plan Highlights

has obtained an initial order from the CCAA Court which provides for, among other things: (i) a stay of proceedings in favor of

BioSteel and its two U.S. affiliates, BioSteel Sports Nutrition USA LLC and BioSteel Manufacturing LLC;

and (ii) the appointment of KSV Restructuring Inc. as monitor of BioSteel.

process will allow the BioSteel business to maximize the value of its assets through a court supervised sales process. Canopy Growth

remains BioSteel Canada's largest creditor and shareholder and anticipates receiving its proportionate share of any recoveries

in the CCAA process.

This number assumes that the convertible debentures issued on July 14, 2023 with an aggregate principal amount of approximately $40.4MM

are settled by the Company in common shares, which settlement is only possible in the event that shareholders of the Company approve

such issuance at a meeting of shareholders on September 25, 2023.

Adjusted EBITDA is a non-GAAP measure used by

management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Adjusted EBITDA

is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss

on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring

costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations,

and further adjusted to remove acquisition-related costs. Asset impairments related to periodic changes to the Company's supply

chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities.

Manager, Communications

Director, Investor Relations

Canopy Growth is a leading North American cannabis

and consumer packaged goods ("CPG") company dedicated to unleashing the power of cannabis to improve lives. Through an unwavering

commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including

Doja, 7ACRES, Tweed, and Deep Space. Canopy Growth's CPG portfolio features targeted 24-hour skincare and wellness solutions from

This Works, gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in Germany by Storz &

Canopy Growth has also established a comprehensive

ecosystem to realize the opportunities presented by the U.S. THC market through its rights to Acreage Holdings, Inc., a vertically

integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast, as well as Wana

Brands, a leading cannabis edible brand in North America, and Jetty Extracts, a California-based producer of high-quality cannabis extracts

and pioneer of clean vape technology.

Beyond our world-class products, Canopy Growth

is leading the industry forward through a commitment to social equity, responsible use, and community reinvestment-pioneering a

future where cannabis is understood and welcomed for its potential to help achieve greater wellbeing and life enhancement.

For more information visit www.canopygrowth.com

References to information included on, or accessible

through, our website do not constitute incorporation by reference of the information contained at or available through our website, and

you should not consider such information to be part of this press release.

Notice Regarding Forward Looking Statements

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 BioSteel's intention to complete proceedings under the CCAA; the outcome of the CCAA proceedings

and any potential recovery for its stakeholders, including Canopy Growth; the impact on Canopy Growth's financial position, including

the potential cash proceeds from the sale of BioSteel's assets; the anticipated removal of the previously identified material weakness

related to the BioSteel business segment; expectations regarding the potential success

of, and the costs and benefits associated with the Company's transformation plan, including the completion of the Company's

sale of its Hershey facility; the assumption that the convertible debentures issued on July 14, 2023 are settled in common shares

of the Company; the occurrence and outcome of the Company's restructuring initiatives and Canopy USA's expected acquisition

of U.S. THC companies; segment and business focuses for FY2024, including delivering positive

Adjusted EBITDA exiting FY2024 and expectations for other economic, business, and/or competitive factors.

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 BioSteel's

ability to complete any future potential transactions in connection with the CCAA proceedings and the terms and conditions thereof; risks

relating to the CCAA process, including uncertainty of any residual value for BioSteel's stakeholders under the CCAA process; negative

operating cash flow; uncertainty of additional financing; use of proceeds; volatility in the price of the Company's common shares;

inherent uncertainty associated with projections; 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; additional dilution; 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 Securities and Exchange Commission through EDGAR at www.sec.gov/edgar, including under the heading "Risk