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CANOPY GROWTH TO ACQUIRE HIKU BRANDS TO STRENGTHEN RETAIL AND BRAND PORTFOLIO
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Canopy Growth Corp. (WEED.T) and Hiku Brands Company Ltd. (HIKU.C) have entered into a definitive arrangement agreement, pursuant to which Canopy Growth will acquire all of the issued and outstanding common shares of Hiku.

Under the terms of the Agreement, Hiku shareholders will receive 0.046 of a Canopy Growth common share (each whole share, a "Canopy Share") in exchange for each common share of Hiku (each, a "Hiku Share"), representing the equivalent of C$1.91 per Hiku Share and a premium of 33% based on the 20-day volume weighted average prices of the Canopy Shares and the Hiku Shares as of July 9, 2018, and a premium of approximately 21% based on the closing prices of the Canopy Shares on the Toronto Stock Exchange ("TSX") and the Hiku Shares on the Canadian Stock Exchange ("CSE") on July 9, 2018.

"Hiku equals brands. Canopy is built on brands. So we combined them," said Bruce Linton, Chairman & CEO, Canopy Growth, in haiku.

Alan Gertner, Chief Executive Officer of Hiku said: "This Transaction represents an incredible step in the Hiku journey that both realizes immediate benefits for our shareholders and at the same time provides an unparalleled opportunity to join forces with a preeminent global cannabis player. Ultimately, together we will continue to build one of the world's most engaging and successful cannabis retail and brand business. Canopy is a truly special cannabis company that is well positioned to lead both in Canada and around the world."

Transaction Highlights:

Secures an Immediate Attractive Premium for Hiku Shareholders:

The Transaction provides Hiku shareholders with a premium of 33% based on the 20-day volume weighted average prices of the Canopy Shares and the Hiku Shares as of July 9, 2018, and a premium of 21% based on the closing prices of the Canopy Shares on the TSX and the Hiku Shares on the CSE on July 9, 2018.

Strengthening a Leading Vertically Integrated Global Cannabis Company:

Canopy Growth is a leading diversified global cannabis company and market leader with distinct brands and an award-winning product portfolio that spans federally legal markets around the globe in both medical and recreational segments. This transaction strengthens the diversity and range of brands in the portfolio and improves access to multiple demographic segments.

Integration of Retail Operations:

The Transaction provides Canopy Growth and Hiku with an integration and expansion opportunity with respect to retail stores in provinces where direct consumer sales will be permitted pursuant to the Cannabis Act, including a pipeline of growth opportunities.

Complimentary Portfolio of Brands:

The Transaction provides Canopy Growth and Hiku with the opportunity to leverage a combined portfolio of established brands through their respective retail stores across the country and thereby generate incremental opportunities with distributors.

Alignment with Strong Management Team:

Hiku's strong management team brings best-in-class retail, design and marketing experience, which are well aligned with and further supplements Canopy's existing strategy and operations.

Strong Access to and Immediate Availability of Capital:

Canopy Growth recently closed the issuance of convertible notes amounting to $600 million in gross proceeds. This capital and liquidity will support both Companies continued expansion efforts

Continued Participation in Expanded Platform for Future Growth:

Hiku shareholders, through their ownership of Canopy Shares, will have the opportunity to participate in the growth of Canopy Growth and will benefit from the enhanced growth prospects of the combined company. The Transaction will provide substantial infrastructure and operational support to accelerate Hiku's growth strategy, future product development and innovation, together with Canopy Growth and its global partners.