Canopy Growth Corporation · TSX:WEED
Canopy Growth — Investor Presentation (October 2022)
16 slides from Canopy Growth's investor presentation, Oct 25, 2022
Slide 1: Accelerating Entry to The U.S. Cannabis market
Accelerating Entry to The U.S. Cannabis market October 25, 2022
Slide 2: Disclaimers & Cautionary Statements
Disclaimers & Cautionary Statements Information Regarding Third Party Financial Information This presentation contains certain financial information (the “Third Party Information”) relating to Canopy USA, LLC (“Canopy USA”); Acreage Holdings, Inc. (“Acreage”); Mountain High Products, LLC, Wana Welln
Slide 3: Participants in the solicitation
Participants in the solicitation The Company and its directors and executive officers may be deemed participants in the solicitation of proxies from the Company’s shareholders with respect to an amendment to the Company’s Articles of Incorporation (the “Amendment”) to facilitate Canopy USA’s acquisi
Slide 4: Transforming Canopy's U.S. Strategy
Transforming Canopy’s U.S. Strategy 1 2 3 Fast-tracks entry to the Establishes a leading, Expect compelling financial world’s largest and fastest premium-focused U.S. brand benefits, including the ability growing cannabis market powerhouse drive revenue growth, and realize cost synergies 4
Slide 5: Uniting Iconic brands Under Common Ownership
Uniting Iconic brands Under Common Ownership Current State Target STATE 1 Canopy USA 2 2 Direct Ownership through Common Shares Structured Investment utilizing Exchangeable Shares U.S. Hold Co Structure Enables Triggering Full Ownership3 of U.S. Cannabis Investments 1 Canopy currently holds options
Slide 6: Shifting revenue mix towards U.S. cannabis
Shifting revenue mix towards U.S. cannabis CURRENT REVENUE MIX1 EXPECTED REVENUE MIX2 Consumer Products & Other Consumer Canada Rest of World U.S. Products & Other Cannabis Cannabis Cannabis Canada Cannabis Rest of World Cannabis 1 Adjusted to exclude Canadian retail operations and C³ Cannabinoid Co
Slide 7: Unleashing the full power of our U.S. ecosystem
Unleashing the full power of our U.S. ecosystem Asset-Light Premium Products National Footprint Business Model • Targeting emerging and fast- • Presence in large-scale markets • Prudent approach to capital growing product categories and rapidly developing adult- investment with balance of (solventle
Slide 8: Strategic Rationale
Strategic Rationale 8
Slide 9: Capitalizing on once-in-a-generation opportunity
Capitalizing on once-in-a-generation opportunity >$50B Projected U.S. THC market opportunity in 20261 21 States where Canopy’s U.S. investments currently have a presence Presence in large-scale & rapidly developing adult-use markets 85% of U.S. market opportunity represented by states Deep network o
Slide 10: Leading Premium-Focused Brand Powerhouse
Leading Premium-Focused Brand Powerhouse Diversified Extracts Gummies Vertical integration from Top 10 cannabis brand and A leading edibles brand in cultivation to retail in multiple top 6 vape brand in California1 North America strategic states Strong regional footholds through Authentic vape exper
Slide 11: Compelling financial benefits
Compelling financial benefits Ability to highlight the value of U.S. investments by fully consolidating Canopy USA’s operating results into Canopy’s financials1 Integration of U.S. assets to drive material revenue growth opportunities Expected expense reductions, such as elimination of Acreage publi
Slide 12: Structured Process
Structured Process 12
Slide 13: Highly structured plan to execute strategy
Highly structured plan to execute strategy Process Outcome • Canopy has created a new holding company, Canopy USA, under which its U.S. cannabis assets will sit ✓ Enables rapid entry to U.S. market New U.S. Holding • Canopy holds non-voting shares in Canopy USA, which are ahead of federal THC permis
Slide 14: Creating financial flexibility for future growth
Creating financial flexibility for future growth • Agreement with certain lenders to repay US$187.5M existing term loan at discounted price Amendment to minimum liquidity covenant under existing • term loan to US$100M ~27% $26M Reduction to Reduction in • Intention to negotiate exchange agreement wi
Slide 15: Projected Timeline
Projected Timeline FY 2023 FY 2024 Q4 h1 H2 Canopy Shareholder Vote To approve creation of new class of exchangeable shares CBI Conversion Following Canopy shareholder vote, CBI expected to convert ownership to Exchangeable shares & terminate IRA Acreage Shareholder Vote Acreage, Jetty, and Acreage
Slide 16: THANK YOU
THANK YOU 16