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Here are 1-3 brief analogies to describe Canopy Growth (CGC):

• The BlackBerry of cannabis, a one-time market leader struggling to adapt and find profitability in a rapidly evolving and competitive landscape.
• A Molson Coors for cannabis, but one facing constant regulatory uncertainty, intense competition, and deep struggles to become profitable.

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• Dried Cannabis Flower: Cannabis flower available in various strains for smoking or vaping.
• Cannabis Oils & Softgels: Concentrated cannabis extracts in oil or capsule form for oral consumption.
• Vape Products: Pre-filled cartridges and disposable pens containing cannabis extracts for inhalation.
• Edibles: Food products such as gummies and chocolates infused with cannabis.
• Cannabis Beverages: Ready-to-drink beverages infused with cannabinoids.

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Canopy Growth (CGC) primarily sells its products to other companies, specifically governmental cannabis distribution and retail entities in Canadian provinces and territories. These entities act as wholesalers and/or major retailers for recreational cannabis within their respective jurisdictions.

The major customers of Canopy Growth include:

• Ontario Cannabis Store (OCS) - The sole wholesale distributor and online retailer for recreational cannabis in Ontario.
• BC Liquor Distribution Branch (LDB) - Manages wholesale distribution and operates government-run retail stores (BC Cannabis Stores) in British Columbia.
• Alberta Gaming, Liquor & Cannabis (AGLC) - The sole wholesale distributor for recreational cannabis in Alberta, licensing private retailers.
• Société québécoise du cannabis (SQDC) - Operates all cannabis retail stores and manages distribution in Quebec.

These entities are governmental or quasi-governmental bodies and, as such, do not have public company stock symbols.

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Luc Mongeau, Chief Executive Officer

Luc Mongeau was appointed Chief Executive Officer of Canopy Growth, effective January 6, 2025. He brings over 25 years of experience as a senior executive, with expertise in marketing, sales, supply chain operations, and mergers and acquisitions. Most recently, he served as CEO of ESolutions Furniture (formerly Bestar-Bush), where he led the company's transformation in the digital commerce furniture industry. Mr. Mongeau previously held presidential roles at Weston Foods and Mars Petcare North America. He also served on Canopy Growth's Board of Directors since February 2024 and as an observer since early 2023.

Tom Stewart, Chief Financial Officer

Tom Stewart was appointed Chief Financial Officer of Canopy Growth, effective September 17, 2025, after serving as Interim Chief Financial Officer since July 2025. He joined Canopy Growth in 2019 as Chief Accounting Officer. Mr. Stewart has over 20 years of experience in public company environments, including a decade in senior finance roles at Constellation Brands, Inc. He began his career in the assurance practice of PricewaterhouseCoopers.

Christelle Gedeon, Chief Legal Officer

Christelle Gedeon serves as the Chief Legal Officer for Canopy Growth.

Jenny Brewer, Chief Human Resources Officer

Jenny Brewer holds the position of Chief Human Resources Officer at Canopy Growth.

Jürgen Bickel, Managing Director and Co-Founder of STORZ & BICKEL GmbH

Jürgen Bickel is the Managing Director and Co-Founder of STORZ & BICKEL GmbH, a subsidiary of Canopy Growth.

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1. Financial Health and Profitability Concerns: Canopy Growth faces significant challenges with its financial health, including consistent negative revenue growth and substantial operating and net losses. The company's Altman Z-Score indicates financial distress, suggesting a potential risk of bankruptcy within the next two years. It has also reported an operating cash flow deficit, deeply negative free cash flow, and considerable income tax liabilities, stemming from high costs and a margin squeeze unrewarded by revenue growth. Furthermore, Canopy Growth may struggle to achieve or maintain profitability and has concerns regarding long-term solvency due to high overall debt levels.
2. Evolving Regulatory Landscape and U.S. Market Entry Challenges: The cannabis industry operates under a highly regulated and rapidly changing legal framework, making compliance difficult for Canopy Growth. Specifically in the U.S., federal prohibitions on cannabis sales can restrict access to banking systems, limiting the company's ability to deposit funds, repatriate capital to Canada, or pay dividends. The timing and outcome of potential U.S. marijuana reclassification create significant market volatility, and any failure in this reclassification or fading investor optimism could lead to sharp declines in stock price. Moreover, Canopy Growth's strategy to enter the U.S. market through Canopy USA has encountered challenges, with the Nasdaq raising concerns and the SEC opposing the company's proposed accounting solution, potentially hindering its ability to pursue U.S. opportunities as effectively as more vertically integrated competitors.
3. Market Volatility and Intense Competition: Canopy Growth's stock price has historically been, and is expected to remain, highly volatile, influenced by various market factors and investor sentiment. The company operates within an intensely competitive cannabis market, and there is a risk that it could be unprepared for a sudden surge in investment that ramps up competition. This inherent market volatility reflects the broader challenges and opportunities within the cannabis industry as it navigates regulatory hurdles and shifting market dynamics.

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The rapid growth, consolidation, and operational entrenchment of US multi-state operators (MSOs) within individual state-legal cannabis markets poses a significant emerging threat. While Canopy Growth and other Canadian licensed producers (LPs) are largely restricted from direct participation in the US THC market due to federal prohibition, US MSOs are actively building massive scale, brand recognition, and distribution networks. This ongoing divergence creates a competitive landscape where US MSOs are establishing dominant positions and efficiency advantages that will be difficult for Canadian LPs to overcome if and when federal legalization occurs, effectively giving US players a substantial head start and potentially limiting Canopy Growth's future market access and profitability in a key growth market.

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Canopy Growth (CGC) operates in the global cannabis market, offering a variety of medical and recreational cannabis products, as well as vaporization devices.

Addressable Market Sizes for Canopy Growth's Main Products and Services:

• Global Legal Cannabis Market:
  • The global legal cannabis market was estimated at USD 69.78 billion in 2024 and is projected to reach USD 216.76 billion by 2033, growing at a compound annual growth rate (CAGR) of 13.49% from 2025 to 2033.
  • Another estimate valued the global cannabis market at USD 43.72 billion in 2022, with a projection to grow to USD 444.34 billion by 2030, exhibiting a CAGR of 34.03% during the forecast period.
• North American Cannabis Market:
  • North America dominated the global legal cannabis market in 2024, accounting for the largest revenue share of 71.69%.
  • In 2022, North America held an 81.79% market share of the cannabis marijuana market.
  • The North America cannabis market is estimated to register a CAGR of 14.5% during the forecast period.
• U.S. Cannabis Market (Medical and Recreational):
  • The U.S. cannabis market size was estimated at USD 38.50 billion in 2024 and is expected to grow at a CAGR of 11.51% from 2025 to 2030.
  • The U.S. cannabis market is projected to reach an estimated value of USD 428.22 billion by 2032.
  • Combined U.S. medical and recreational cannabis sales could reach $33.6 billion by the end of 2023, with retail cannabis sales projected to be upwards of $53.5 billion by 2027.
  • The U.S. cannabis market revenue is USD 40.7 billion in 2024, expected to reach USD 74.6 billion by 2032, with a CAGR of 6.8% from 2025 to 2032.
  • The U.S. market is expected to reach almost $43 billion in sales in 2024, and inch closer to $50 billion by 2029.
  • The U.S. is projected to be an over $50 billion market opportunity by 2026.
• Canada Legal Cannabis Market (Medical and Recreational):
  • The Canada legal cannabis market size was valued at USD 3.25 billion in 2024 and is projected to grow at a CAGR of 12.0% from 2025 to 2030.
  • The total cannabis market in Canada is estimated to generate up to $7 billion in sales, according to Deloitte's forecast.
  • Recreational cannabis sales in Canada are projected to be $7.9 billion in 2025 and $12.2 billion in 2030, with a CAGR of approximately 13.4% from 2021 to 2030.
  • Canada's medical cannabis industry was worth an estimated $573 million in 2023-24.
• Global Medical Cannabis Market:
  • The global medical cannabis market was valued at USD 18.3 billion in 2023 and is poised to grow from USD 22.27 billion in 2024 to USD 107.17 billion by 2032, growing at a CAGR of 21.7% during the forecast period (2025-2032).

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1. Continued Growth in Canadian Medical Cannabis: Canopy Growth anticipates sustained expansion in the Canadian medical cannabis sector. This growth is expected to be fueled by an increasing number of insured patients, larger average order sizes, and a wider array of product choices available through its Spectrum Therapeutics online store.
2. Expansion of Canadian Adult-Use Cannabis Portfolio and Distribution: The company is focused on driving revenue through its Canadian adult-use market by introducing new innovations, such as infused pre-rolls (e.g., Claybourne brand) and new all-in-one vapes (Tweed and 7ACRES). Improved distribution channels and strong consumer demand for these new products are key to this growth. Canopy is also building on this momentum with additional Claybourne innovation and new genetics across its core flower portfolio and pre-roll joint brands.
3. Strategic Growth in European Cannabis Markets: Canopy Growth is optimistic about significant expansion in its European markets, particularly in Germany, where it has already seen double-digit growth. The company is actively working to enhance product offerings, strengthen its supply chain in Europe, and restore profitability in international markets by supplying from its Canadian GMP facilities.
4. New Product Launches and Market Presence from Storz & Bickel: The Storz & Bickel vaporizer brand is expected to contribute to revenue growth, driven by new product introductions such as the Veazy vaporizer launched in September 2025. The brand has demonstrated strong performance in key markets, including over 100% growth in Germany in Q1 FY2025.
5. Potential for U.S. Cannabis Market Entry and Development: Canopy Growth is strategically positioned to capitalize on potential developments in the U.S. cannabis market through its Canopy USA structure, which holds leading cannabis assets like Wana (edibles) and Jetty (vaporizer brands). The company is preparing for potential regulatory changes, such as the rescheduling of cannabis, which could open significant opportunities.

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Share Issuance

• Canopy Growth filed a shelf prospectus in February 2021, allowing it to raise up to US$2 billion through the issuance of various securities over a 25-month period to enhance cash reserves.
• In August 2025, the company established an at-the-market (ATM) equity program, authorizing the sale of up to US$200 million of common shares, with proceeds intended for investments, future acquisitions, working capital, and debt repayment.
• An earlier ATM program was initiated in June 2024, enabling the potential issuance of up to US$250 million in common shares, contributing to an estimated dilution rate of approximately 33% per year over the preceding three years.

Inbound Investments

• The Huneeus 2017 Irrevocable Trust made an investment of up to US$20 million in Canopy USA, a subsidiary, in connection with the acquisition of additional Class A shares in Canopy USA.

Outbound Investments

• Canopy Growth, through its subsidiary Canopy USA, completed the acquisition of Acreage Holdings in December 2024, securing 100% ownership. This involved the issuance of approximately US$21.2 million in Canopy Shares to former Acreage shareholders.
• In October 2021, Canopy Growth acquired Wana Brands for CAD$298 million, with Canopy USA later completing the acquisition of 100% of Wana Wellness, LLC.
• Canopy Growth completed the acquisition of The Supreme Cannabis Company in April 2021 for approximately CAD$435 million on a fully-diluted basis.

Capital Expenditures

• For the first quarter of fiscal year 2025 (ended June 30, 2024), Canopy Growth reported capital expenditures of approximately US$2.9 million.
• The company's research and development (R&D) expense saw a significant reduction, declining from US$32.3 million in fiscal year 2022 to US$4.6 million in fiscal year 2024.