Canopy Growth Corporation · TSX:WEED
Canopy Growth — Merger or Acquisition (April 2021)
18 slides from Canopy Growth's merger presentation, April 2021
Slide 1: Canopy Growth Corporation + Supreme Cannabis
CANOPY GROWTH CORPORATION + SUPREME CANNABIS Canopy Growth’s Acquisition of Supreme Cannabis (TSX: FIRE) April 2021
Slide 2: Disclaimers and Cautionary Statements
DISCLAIMERS AND CAUTIONARY STATEMENTS This presentation 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 al
Slide 3: Transaction Rationale
TRANSACTION RATIONALE Benefits for Supreme Shareholders: Attractive Premium, Enhanced Liquidity and Continued Participation Benefits for Canopy Shareholders: Strengthened Brand Portfolio and Production Capabilities; Attractive Financial Synergies Cost Synergies and Potential to Accelerate Revenue Gr
Slide 4: Transaction Summary
TRANSACTION SUMMARY ❖ Canopy Growth to acquire all of the issued and outstanding shares of Supreme Cannabis (the “Transaction”) by way of a court approved Plan of Arrangement (the “Arrangement”) ❖ Supreme Cannabis shareholders will receive 0.01165872x of a Canopy common share and $0.0001 in cash in
Slide 5: Combined Transaction Highlights
COMBINED TRANSACTION HIGHLIGHTS ✓ Solidifies Canopy’s Leadership Position in the Canadian Recreational Market • The transaction combines Canopy’s preeminent position with Supreme Cannabis’ Top-10 position in Canada to create a pro forma Canadian recreational market share of 13.6%(1), including 7ACRE
Slide 6: Benefits for Supreme Shareholders
BENEFITS FOR SUPREME SHAREHOLDERS ✓ Secures an Immediate Attractive Premium for Supreme Cannabis Shareholders • The transaction provides Supreme Cannabis shareholders with a premium per Supreme Cannabis share of approximately 66% based on the closing prices of the Supreme and Canopy common shares on
Slide 7: Benefits to Both Canopy and Supreme Shareholders
BENEFITS TO BOTH CANOPY AND SUPREME SHAREHOLDERS ➢ Leading premium brands in ➢ Leading brands across both 1.0 and 2.0 ➢ R&D focused on Plant Sciences, Human Canada product formats in Canada Effects and User Technology and Design ➢ A premium, low-cost and ➢ Consumer-driven new product innovation ➢ Ad
Slide 8: Transaction Delivers Substantial Financial Benefits
TRANSACTION DELIVERS SUBSTANTIAL FINANCIAL BENEFITS ✓ Opportunity to Achieve Potential Cost Synergies Estimated at Approximately $30 mm Within Two-Years • Increase scale to drive improved utilization and fixed cost absorption • Production and supply chain optimization • SG&A savings from corporate o
Slide 9: Bolsters Leadership Position in Canadian Recreational Market
BOLSTERS LEADERSHIP POSITION IN CANADIAN RECREATIONAL MARKET LQ Recreational Net Revenue(1) $89 $80 $13 $56 $40 $67 $13 $29 $23 $17 $32 $14 $13 $27 (2) (3) (4) Tilray + Canopy + HEXO + Aurora Village Farms Organigram Sundial Auxly Aphria Supreme Zenabis 1. LQ: Last Quarter. Show in C$ mm. Select can
Slide 10: Leading Market Share Position in Canadian Recreational Market
LEADING MARKET SHARE POSITION IN CANADIAN RECREATIONAL MARKET (1) 15.0% 13.6% 2.9% 10.7% 7.8% 7.3% 6.3% 6.0% 4.5% 3.4% 2.4% 1.9% (2) (3) (4) PF Tilray PF Canopy Redecan PF HEXO Aurora Village Farms Auxly Organigram Cronos Indiva #2 in oral & #1 in dried flower #2 in beverages #3 in pre-roll sublingu
Slide 11: Complementary Brand Portfolio Addressing Full Spectrum of Consumer Segments
COMPLEMENTARY BRAND PORTFOLIO ADDRESSING FULL SPECTRUM OF CONSUMER SEGMENTS Flower & Pre-rolls Vapes Beverages Edibles Edible Extracts Concentrates Medical Ultra Premium (1) Premium Mainstream (2) Value 1. Ace Valley brand currently available in pre-roll format only. 2. Hiway brand concentrates incl
Slide 12: Canopy Growth Overview
CANOPY GROWTH OVERVIEW ❖ Financial Highlights o LQA(1) Revenue: ~$610 mm o Expect to achieve positive Adjusted EBITDA(2) during the second half of FY 2022 o Strong Pro-forma balance sheet with cash & short-term investments of ~$2.5 bn(3) ❖ Leading Cannabis Business Focused on Canada, US and Germany
Slide 13: Canopy Offers Robust Products Across Distinct Brands
CANOPY OFFERS ROBUST PRODUCTS ACROSS DISTINCT BRANDS Flower and Pre-Rolls Vapes ▪ Highly curated and broad appeal Tokyo Smoke Luma: ▪ Focused on terpenes and aromas UL 8139 certified vape system with ▪ Appeals to enthusiasts rechargeable ▪ Experience-based products batteries ▪ Exports medically appr
Slide 14: Canopy's US Ecosystem Strategy
CANOPY’S US ECOSYTEM STRATEGY Invest in Scalable Brands Constellation Brands • Bring our THC brands into the US • Investment grade balance sheet market through Multi-State strength and access to banking Operator (“MSO”) licensing or • Leverage Constellation’s powerful hemp-derived CBD extensions dis
Slide 15: Supreme Cannabis Overview
SUPREME CANNABIS OVERVIEW ❖ Financial Highlights o LQA(1) Revenue: ~$75 mm o $3.6 mm positive Adj. EBITDA(2) in most recent quarter (Q2 FY21 ended 31-Dec-2020) ❖ Consumer-driven Brands and Products with Leading Presence o Top-10 LP in Canada with a ~3% market share(3) o 7ACRES is the #1 premium flow
Slide 16: Diverse Cannabis Brands and Products
DIVERSE CANNABIS BRANDS AND PRODUCTS High-Quality Products at Every Key Price Point Multi-award-winning cannabis Ultra premium brand extension Affordable cannabis brand Accessible recreational brand Premium wellness brand International medical brand brand regarded for its premium delivering high-pot
Slide 17: Kincardine: Supreme's Cultivation Center of Excellence
KINCARDINE: SUPREME’S CULTIVATION CENTER OF EXCELLENCE 7ACRES FACILITY | KINCARDINE, O N T A R I O Core Capabilities Hybrid facility | Indoor sealed cultivation with greenhouse roof Product | Produces premium flower with high consistency in small batch grows Advanced processing | Proprietary whole-p
Slide 18: Thank You
Canopy Growth Corporation The Supreme Cannabis Company NASDAQ: CGC | TSX : WEED TSX : FIRE Canopygrowth.com Supreme.ca THANK YOU Investor Relations: Judy Hong Tyler Burns Craig MacPhail Vice President, Investor Relations Director, Investor Relations Investor Relations Judy.Hong@canopygrowth.com Tyle