Canopy Growth Corporation

Canopy Growth Corporation

Contents Canopy Growth Corporation: Overview A Brief History of Cannabis Legal History of Cannabis in Canada Medical Cannabis Recreational Cannabis Provincial Distribution The Future of Cannabis in Canada

Company Snapshot Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms 7 operational world-class licensed facilities, indoor and greenhouse production, combined 743,000 sq. ft. Approx. $6B Market Capitalization 8.3M Average Daily Volume (30 Day) Total announced production platform will exceed 5,600,000 sq. ft. once complete Presence in SEVEN Canadian Provinces and SEVEN countries worldwide 8 ACMPR licenses Licensed to produce and sell dried bud, oil extract, soft gel capsules

Niagara-on-the-Lake, Ontario 375,000 sq. ft. licensed

Domestic Expansion Production Platform totaling 5,600,000+ sq. ft. licensed or underway Edmonton 100,000 Saint-Lucien 10,000 St. John s 150,000 Lower Mainland 1,300,000 Creemore 15,000 Mirabel 700,000 Fredericton 50,000 Lower Mainland 1,700,000 Yorkton 75,000 Toronto 50,000 Niagara 375,000 / 1,000,000 Bowmanville 75,000 Smiths Falls 168,000 / 450,000

A Brief History of Cannabis The cannabis plant was cultivated for fibers since 4000 BC Medical use of the plant dates back to 2900 BC (China) Introduced to western medicine by Dr. William O Shaughnessy around 1840 In the late 1800's and early 1900 s Cannabis was a common component in many patented medicines. Reportedly Queen Victoria s favorite treatment for menstrual cramps Cannabis was prohibited in North America in the 1920s-30s (Reefer Madness, Marihuana tax act of 1937) which halted research into its medical uses

Legal History of Cannabis in Canada MMAR (2001-2014) MMPR (2014 2016) Medical condition categories No condition categories Lengthy medical application submitted to Health Canada for approval Cannabis purchased through Health Canada; Personal Production Licenses OR Designated Production Licenses approved Medical Document signed by physician and submitted to Licensed Producer (like a traditional Rx) Cannabis purchased through federally regulated Licensed Producer; removed personal production

Medical Cannabis in Canada: Leading the World Regulations Health Canada s ACMPR oversees the secure commercial production of consistent and quality medicine Regulations cover the production and sale of dried cannabis, cannabis oil, and cannabis seeds Patients must obtain medical approval from their healthcare practitioner and provide a medical document to the Licensed Producer (LP) from which they wish to purchase cannabis Medical Cannabis Market Drivers 200K+ patients registered, Health Canada conservatively estimates 450K patients by 2024 Patient experience encouraging more doctors to prescribe 15,000 doctors prescribing currently Doctors have become increasingly receptive as delivery format evolved to oils and now, soft gel capsules R&D, clinical trials and commercialization of cannabisbased indications (over the counter, natural health & DIN) are expected to significantly increase size of future medical cannabis market

Access to Medical Cannabis Patients obtain a Medical Document (prescription) from a Medical Doctor for Medical Marijuana Authorized user selects a licensed producer to provide their product Product is shipped via secure courier/xpresspost Patient receives customer card/identification confirming authorization Product arrives in unmarked, tamper-proof container with proof of shipping date

Medical Cannabis in Canada 3.0B 100M $ $ 2016 *2024 * Eight Capital, The Value Case for Investing in the Cannabis Sector 1 3

Countries With Federally-Legal Medicinal Cannabis Regimes, 2014 Legalized (medical) 1 4

Countries With Federally-Legal Cannabis Regimes, 2018 The legalization of Cannabis is spreading around the world. Legalized (medical) In the process of legalizing/exploring legalization (medical) 1 5

Global Expansion Canopy Growth is not pursuing business opportunities where such activities are federally-illegal, such as the United States

Federal Legalization Timeline April Sept 2017 Fall 2017 Dec 2017 Jan - May 2018 June 2018 Aug - Sept 2018 Oct - Dec 2018 June / July 2018 Bill C-45 Legislative Passage House of Commons Senate Consideration Royal Assent Passage of Federal Legislation Regulations and Legislation in Effect Edibles Legalized by July 2019 at the latest Key Dates in the Senate: 2nd Reading vote - on or before March 22 3rd Reading vote - on or before June 7 1 7

Jurisdictions Federal Production Licensing Marketing Rights Excise Taxation Permitted Forms - Liquid Edibles Provincial Retail Models Pricing price change mechanisms. Marketing Restrictions limits on where/how we engage consumers at retail point of connection Route to Market First right of receipt of liquor boards Direct delivery to retailers Consumption Spaces Trade Practice Rules Can retailers monetize shelf space?. Municipal Retail Zoning Production Zoning Consumption Restrictions Homegrow 18

Provincial Retail Frameworks Headquarters Licensed Facility Future Facility Provinces Concurrently Legislating: Distribution Markups Trade Practice Rules Provincial Marketing Rights Pricing Controls Private retail Government retail Hybrid retail 1 9

Canadian Regulated Recreational Market Beginning Summer 2018 $7-10B $? $9B $6B $5B Black Market * First Time Buyers Beer Wine Spirts Social Lubricants! Estimate, Avery Shenfeld, Chief Economist, CIBC World Markets, http://research.cibcwm.com/economic_public/download/eijan16.pdf http://www.statcan.gc.ca/daily-quotidien/160510/dq160510b-eng.htm 2 0

Cannabis - An Ingredient With Disruptive Potential HAPPY WAISTLINE NO HANGOVER HAPPY LIVER 2 4

U.S. product assortment. Our future?

Education 2 6

Social Responsibility 2 7

Thank You