Canopy Growth Agrees to Make 3 Prepayments to Reduce Term Loan by $50 Million

[PRESS RELEASE] – SMITHS FALLS, Ontario, July 29, 2025 – Canopy Growth Corp., a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, announced that it has entered into an agreement with certain of its lenders to make three prepayments that are expected to reduce the company’s senior secured term loan by US$50 million by March 31, 2026. The agreement was entered into to facilitate the Acreage financing (as defined below).

Under the terms of the agreement, Canopy Growth agreed to make the following prepayments under the term loan: (i) US$25 million at par on or about July 31, 2025; (ii) US$10 million at par on or prior to Dec. 31, 2025; and (iii) US$15 million at par on or prior to March 31, 2026 (collectively, the “prepayments”). When completed, the prepayments are expected to reduce the company’s interest expense under the term loan by approximately US$6.5 million on an annualized basis.

“These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense,” Canopy Growth CEO Luc Mongeau said. “Reducing debt is essential to creating the financial flexibility Canopy Growth’s needs to drive sustainable growth now and in the future.”

In connection with the agreement, Canopy USA LLC obtained consent from the company (the “Acreage financing consent”) in order for Canopy USA to secure an additional US$22 million in funding for Acreage Holdings Inc. and its subsidiaries (the “Acreage financing”). The Acreage financing consent required the consent of the lenders.