Canopy Growth Corporation Faces Restatement of Financial Statements Following Internal Review

Los Angeles– Canopy Growth Corporation, a cannabis company, announced today that it will need to restate its financial statements following an internal review of the financial reporting matters related to BioSteel Sports Nutrition Inc. This decision comes after the company’s determination that restatements are necessary for its audited consolidated financial statements for the fiscal year ended March 31, 2022, as well as its unaudited consolidated financial statements for the quarterly periods ended June 30, 2022, September 30, 2022, and December 31, 2022.

The restated financial statements, to be known as the “Restated Financial Statements,” are part of Canopy Growth’s efforts to ensure accurate and transparent reporting. The company filed a material change report and a Current Report on Form 8-K on May 10, 2023, detailing the situation and its application for a management cease trade order (MCTO). The MCTO, which is being voluntarily pursued by Canopy Growth, will be imposed against certain directors and officers of the company. It will remain in effect until the Restated Financial Statements are filed.

It’s important to note that the MCTO does not restrict trading for individuals who are not directors or officers of Canopy Growth, and they can continue to trade in accordance with applicable securities laws.

Canopy Growth also recently submitted Form 12b-25 with the U.S. Securities and Exchange Commission, indicating its intention to complete the BioSteel Review and file its Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (referred to as the “2023 10-K”) within the 15 calendar day extension provided by Rule 12b-25(b) under the U.S. Securities Exchange Act of 1934, as amended.

The company has assured stakeholders that it will promptly provide information in accordance with National Policy 12-203 – Management Cease Trade Orders (NP 12-203) regarding any further developments related to this matter. Canopy Growth plans to issue bi-weekly status update reports until the Restated Financial Statements have been filed and the MCTO has been revoked.

At this time, Canopy Growth has emphasized that it has not taken any steps toward insolvency proceedings and has no material information to release to the public. The company has made these statements in compliance with the requirements of applicable securities laws.