Canopy Growth Corporation · TSX:WEED
Canopy Growth — Merger or Acquisition (August 2018)
17 slides from Canopy Growth's merger presentation, August 2018
Slide 1: Constellation Brands Investment in Canopy Growth
Constellation Brands Investment in Canopy Growth Expanding our Strategic Partnership August 2018
Slide 2: Forward-looking Information Disclaimer
Forward-looking Information Disclaimer This presentation contains “forward-looking information” and “forward-looking statements” (which we refer to collectively as forward-looking information) within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within t
Slide 3: Working Together Towards Global Leadership
Working Together Towards Global Leadership The powerful combination gives Canopy the size, scale and strength to lead on a global level Global powerhouse positioned to take advantage of 1 the rapidly-growing cannabis market Global leader in the total beverage alcohol category Unparalleled expert
Slide 4: How it Started
How it Started Oct-2017 Jun-2018 Oct-2017 Constellation and Canopy Canadian government passes Today Constellation makes initial enter into a Bill C-45, which will Based on success of initial investment investment in Canopy with commercialization agreement effectively legalize the and conviction in t
Slide 5: Getting to Today
Getting to Today Tremendous Canopy Share Price Appreciation Since Constellation’s Initial Investment A 30-Oct-2017 F 50 24-May-2018 Constellation announces H Canopy begins trading on NYSE C$245mm investment in Canopy for ~9.9% ownership G 30-May-2018 40 B Canopy announces entry into I C$37.00 05-Dec
Slide 6: Creation of Global Brand Starts with Cooperation
Creation of Global Brand Starts with Cooperation Expanded Partnership Across All Current Continuity of Best-in-Class Management and Future Products… Current Products Retain Current Maintain Canadian Future Management Team Corporate Domicile Products Flower Oils Soft Gel Caps Expansion of Board Leade
Slide 7: Canopy’s Positioning for Success
Canopy’s Positioning for Success Key Metrics Largest Legal Cannabis Production Footprint in the World #1 Canadian Licensed Producer by Supply Agreement Award1 8 36% St. John’s Supply Agreements of all Supply Agreements Edmonton Signed to Date Awarded to Date in Canada2 B Delta4 Yorkton ~68K A Alderg
Slide 8: Canopy’s Complementary Brands and Retail Footprint
Canopy’s Complementary Brands and Retail Footprint Engaging Retail Presence Provides Compelling Brand Recognition Emerging Global Presence and Infrastructure YT Cultivation/License Application/Facility Under Development NT NU Germany Jamaica 8 NL BC AB SK Denmark Columbia MB 5 6 ON QC PEI Spain Leso
Slide 9: Constellation’s Global Brand Building Platform
Constellation’s Global Brand Building Platform Industry Leader in Total Beverage Alcohol with Worldwide Brand Recognition Global Manufacturing Footprint Beer Wine Spirits 26 9 3 1 Wineries / Breweries Distilleries Glass Plant Facilities Source: Company website | 9
Slide 10: Cannabis Market Opportunity
Cannabis Market Opportunity Governments Around the World Have Signalled a Significant Change in US Opportunity: Attitudes Towards Cannabis in Recent Years ~$50bn Industry Today1 Estimated US Cannabis Sales vs. Other Countries with / Exploring Legal Cannabis Framework US CPG Categories (US$bn) 2001 2
Slide 11: Cannabis as a Potentially Disruptive Ingredient
Cannabis as a Potentially Disruptive Ingredient Cannabis is the New Frontier of Human and New Markets to Drive Incremental Growth Animal Health Develop and validate cannabinoid based Base medicines as a Market Global Population of Consumption Price per Gram safer alternative to IP Protection Adult C
Slide 12: Experienced Canopy Management Team Poised to Continue Delivering Exceptional Growth
Experienced Canopy Management Team Poised to Continue Delivering Exceptional Growth Bruce Linton Mark Zekulin Tim Saunders David Bigioni Chairman and Co-CEO President and Co-CEO Executive VP and CFO Chief Commercial Officer Founded Canopy; CEO since Joined Canopy at founding; Company Background: Joi
Slide 13: Strategy Doesn’t Change, It Only Gets Better
Strategy Doesn’t Change, It Only Gets Better Canopy Near-Term Priorities Constellation’s Growth Accelerators 1 Cement Leadership Position 2 Capture Additional Share in World-class consumer brand building in Canadian Recreational Canadian and International expertise Market Medicinal Market Deep u
Slide 14: The Transaction
The Transaction Pro Forma Tranche Expiry Date Shares Price Premium2 CAD / USD3 Ownership1 Today 18.9mm -- -- -- ~8% Acquisition of New Shares 104.5mm C$48.60 38% C$5.1bn / $3.9bn ~35% Shares and Warrants1 Existing Warrants Apr-2020 18.9mm C$12.98 -- C$245mm / $187mm ~38% Tranche A Warrants 3 Years A
Slide 15: Key Matters and Next Steps
Key Matters and Next Steps 1 Canopy Shareholder Approval Canopy Annual General Meeting to be postponed to no later than September 28, 2018 — Shareholders to vote on proposed Constellation Transaction and Constellation’s Board nominees — Requisite approval threshold of simple majority of the votes
Slide 16: Appendix A: Supplementary Materials
Appendix A: Supplementary Materials
Slide 17: Canopy Performance Highlights
Canopy Performance Highlights Revenue (C$ in mm) Sales (kg & kg equiv.) $21.7 $22.8 2,528 2,330 $17.6 2,020 $15.9 1,830 $14.7 1,740 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Average Sales Price / Gram Patients (‘000) $8.43 74 $8.30 69 64 59 $8.03 $7.99 55 $7.96