Canopy Growth Confirms Canopy USA's Acquisition of Wana

Canopy USA is fulfilling its ambition of establishing a leading brand-focused cannabis company concentrated on state-legal markets and hemp-derived products across the U.S.

SMITHS FALLS, ON, Oct. 9, 2024 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NASDAQ: CGC) today confirmed that Canopy USA, LLC ("Canopy USA") has completed its acquisition of Wana (as defined below), inclusive of Wana Wellness, LLC, The CIMA Group, LLC, and Mountain High Products, LLC (collectively, "Wana"). Canopy USA now owns 100% of the outstanding equity interests in Wana.

Together with the completed acquisition of approximately 75% of the shares of Lemurian, Inc. ("Jetty") as announced on June 4, 2024, Canopy USA is fulfilling its ambition of establishing a leading brand-focused cannabis company in the U.S. Wana and Jetty have identified areas of collaboration, including the establishment of a joint sales force in the New York market, focused on category dominance across the edible and vape segments.

This announcement follows Wana's recent launch of Wanderous^™, a first-of-its-kind direct-to-consumer marketplace designed to offer consumers a curated selection of high-quality hemp-derived products, including Delta-9-THC and non-intoxicating CBD gummies from leading brands like Wana, Cann^™, Happi^™, Charlotte's Web^™, Martha Stewart CBD^™, and MXXN^™. As part of this launch, Wana introduced its new line of Wana Beverages, ready-to-drink infused sparkling beverages that combine hemp extracts, real fruit juice, and other beneficial ingredients, offering consumers a new and highly sessionable way to experience Wana products.

"With Wana now part of Canopy USA alongside Jetty, Canopy USA is gaining momentum while reinforcing its commitment to building a diverse portfolio of industry-leading brands in the U.S. cannabis market," said David Klein, Chief Executive Officer of Canopy Growth, and member of the board of managers of Canopy USA. "Completing the acquisition of Wana marks another significant milestone in Canopy USA's strategy and unlocks new growth opportunities across both state-legal markets and through hemp-derived products across the U.S."

"This acquisition represents an exciting next step for Canopy USA, as we blend Wana's expertise in crafting innovative edibles with Jetty's pioneering developments in vape and extract products," said Joe Hodas, President, Wana Brands. "With the launch of Wanderous, Wana's one-stop-shop for premium hemp-derived products, and the expansion of the brand's core portfolio into new U.S. states, Wana is continuing its leadership in the North American edibles category with trusted, high-quality product offerings.

The completed acquisitions of Wana and approximately 75% of the shares of Jetty, followed by the contemplated acquisition of Acreage Holdings, Inc. ("Acreage"), are expected to enable Canopy USA to realize significant financial benefits, including revenue growth and cost synergies across the Canopy USA ecosystem.

About Canopy Growth

Canopy Growth is a world leading cannabis 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, in addition to category defining vaporizer technology made in Germany by Storz & Bickel.

Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA has closed the acquisitions of approximately 75% of the shares of Jetty and 100% of Wana. Jetty owns and operates Jetty Extracts, a California-based producer of high-quality cannabis extracts and pioneer of clean vape technology, and Wana is a leading North American edibles brand. The option to acquire Acreage, a vertically integrated multi-state cannabis operator with principal operations in densely populated states across the Northeast and Midwest, has also been exercised.

Beyond its 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 well-being 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.

Forward-Looking Statements

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 timing of closing of Canopy USA's acquisition of Acreage; and expectations and outcomes relating to Canopy USA's acquisition of Wana, Jetty and Acreage.

Risks, uncertainties and other factors involved with forward-looking information or statements could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the conditions precedent to the acquisition of Acreage not being satisfied or waived; negative operating cash flow; uncertainty of additional financing; use of proceeds; volatility in the price of the Company's common shares; 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.sedarplus.com and with the Securities and Exchange Commission through EDGAR at www.sec.gov/edgar, including under the heading "Risk Factors" in the Company's annual report on Form 10-K for the year ended March 31, 2024, and its subsequently filed quarterly reports on Form 10-Q.

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 or statements 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 or statements 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 statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

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