SMITHS
FALLS, ON, June 12, 2023 /PRNewswire/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX:
WEED) (NASDAQ: CGC) is providing this bi-weekly update on the
status of the management cease trade order granted on June 2, 2023 (the "MCTO") by its principal
regulator, the Ontario Securities Commission under National Policy
12-203 – Management Cease Trade Orders ("NP
12-203"), following the Company's announcement on May 26, 2023 (the
"Default Announcement") that the Company has
initiated an internal review of the financial reporting matters
related to BioSteel Sports Nutrition Inc. (the "BioSteel
Review") and has determined that it will need to restate
its (i) audited consolidated financial statements for the fiscal
year ended March 31, 2022, included
in the Company's Annual Report on Form 10-K for the fiscal year
ended March 31, 2022 and (ii)
unaudited consolidated financial statements for the quarterly
periods ended June 30, 2022,
September 30, 2022 and December 31, 2022, included in the Corporation's
Quarterly Reports on Form 10-Q for such quarterly periods
(collectively, the "Restated Financial Statements").
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The Company reports that: (i) there are no changes to the
information contained in the Default Announcement that would
reasonably be expected to be material to an investor; (ii) the
Company is satisfying and confirms that it intends to continue to
satisfy the provisions of the alternative information guidelines
under NP 12-203 and issue bi-weekly default status reports until
the Restated Financial Statements are filed, each of which will be
issued in the form of a press release; (iii) there has not been
any other specified default by the Company under NP 12-203, and,
except as set forth below, no such other default is anticipated;
(iv) the Company is not subject to any insolvency proceedings; and
(v) there is no material information concerning the affairs of the
Company that has not been generally disclosed.
The Company continues to work with its auditors to complete the
Restated Financial Statements further to the Company's recent
filing of Form 12b-25 with the U.S. Securities and Exchange
Commission. While the Company is continuing to work diligently to
complete the BioSteel Review and the Restated Financial Statements
it will not report its Annual Report on Form 10-K for the fiscal
year ended March 31, 2023 (the
"2023 10-K") on or before the expiration of the 15 calendar
day extension provided by Rule 12b-25(b) but expects to file on or before
June 23, 2023.
About Canopy Growth
Canopy Growth is a leading North American cannabis and CPG
company dedicated to unleashing the power of cannabis to improve
lives. Through an unwavering commitment to our consumers, Canopy
Growth delivers innovative products with a focus on premium and
mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep
Space. Our CPG portfolio features sugar-free sports hydration brand
BioSteel, targeted 24-hour skincare and wellness solutions from
This Works, gourmet wellness products by Martha Stewart CBD, and
category defining vaporizer technology made in Germany by Storz & Bickel. Canopy Growth
has also established a comprehensive ecosystem to realize the
opportunities presented by the U.S. THC market through its rights
to Acreage Holdings, Inc. a vertically integrated multi-state
cannabis operator with principal operations in densely populated
states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in
North America, and Jetty Extracts,
a California-based producer of
high-quality cannabis extracts and pioneer of clean vape
technology. Beyond our world-class products, Canopy Growth is
leading the industry forward through a commitment to social equity,
responsible use, and community reinvestment— pioneering a future
where cannabis is understood and welcomed for its potential to help
achieve greater well-being and life enhancement. For more
information visit www.canopygrowth.com.
FORWARD-LOOKING STATEMENTS
This news release 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 always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "estimates", "intends", "anticipates"
or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements or information involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company or
its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements and uncertainties include
statements with respect to the ability of the Company to be in
compliance with NP 12-203; the the timing to complete the
BioSteel Review, the outstanding work and the planned filing of the
Restated Financial Statements; the expected timing of the filing of
the 2023 10-K; the duration of the MCTO; disclosure of further
updates and bi-weekly status reports; and expectations for other
economic, business, and/or competitive factors.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information,
including delays in completing the Restated Financial Statements
and the 2023 Form 10-K; negative operating cash flow; uncertainty
of additional financing; use of proceeds; volatility in the price
of the Company's common shares; inherent uncertainty associated
with projections; expectations regarding future investment, growth
and expansion of operations; regulatory and licensing risks;
changes in general economic, business and political conditions,
including changes in the financial and stock markets and the
impacts of increased rates of inflation; legal and regulatory risks
inherent in the cannabis industry, including the global regulatory
landscape and enforcement related to cannabis; additional dilution;
political risks and risks relating to regulatory change; risks
relating to anti-money laundering laws; compliance with extensive
government regulation and the interpretation of various laws
regulations and policies; public opinion and perception of the
cannabis industry; and such other risks contained in the public
filings of the Company filed with Canadian securities regulators
and available under the Company's profile on SEDAR at www.sedar.com
and with the United States Securities and Exchange Commission
through EDGAR at www.sec.gov/edgar, including under the heading
"Risk Factors" in the Company's annual report on Form 10-K for the
year ended March 31, 2022 and its
subsequently filed quarterly reports on Form 10-Q.
In respect of the forward-looking statements and information,
the Company has provided such statements and information in
reliance on certain assumptions that they believe are reasonable at
this time. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. Should one or more of the foregoing risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake any obligation to publicly update such forward-looking
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
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SOURCE Canopy Growth Corporation