Risk Factors Update Summary

• In April 2023, the Supreme Court of Canada affirmed provinces' power to enact stricter cannabis regulations, impacting operations.
• We incurred significant losses of $42.1 million in recent periods, raising concerns about profitability. This change might result in continued investor skepticism regarding financial stability.
• In 2023, we restated financial statements for the fiscal year ended March 31, 2022, incurring substantial costs, including legal fees.
• The Canadian Transformative Plan may not alleviate substantial doubt about our ability to continue as a going concern, impacting investor confidence.
• As of May 28, 2024, we had outstanding 2,292,947 warrants exercisable into Canopy Shares at $13.50 each until September 19, 2028.
• We expect to receive $25 million from the BioSteel Canada asset sale in March 2024, which could improve liquidity.
• Any rescheduling of U.S. Schedule I cannabis to Schedule III could introduce uncertain regulatory obligations and affect competitive positioning.
• The Trust's ownership interest in Canopy USA is not quantifiable, raising concerns about control and influence over strategic decisions.
• We may face significant inventory write-downs due to continued pricing pressures and oversupply in the cannabis market.
• The SEC and OSC investigations could lead to significant legal expenses and distract management, adversely affecting operations.