Risk Factors Update Summary

• Added a material weakness in internal control over financial reporting, with one unremediated weakness as of December 31, 2022.
• Increased focus on cybersecurity risks, potential breaches, and the need for enhanced data protection measures.
• Expansion into new jurisdictions involves significant risks, requiring substantial resources and upfront capital investments.
• Transitioned from having subsidiaries with limited operating histories to emphasizing the company's limited operating history.
• Announced plans to cease U.S. hemp operations, impacting the company's strategic direction and financial performance.
• Entry into new markets may result in significant costs, asset impairments, and operational challenges.
• Significantly increased the importance of Cronos GrowCo to the business and operations due to wind-down activities at the Peace Naturals Campus.
• Highlighted the uncertainty and potential adverse effects of the Israel-Hamas War on operations in Israel.
• Potential failure to obtain Health Canada approval for changes to the Peace Naturals Campus perimeter.
• Emphasized the importance of obtaining Health Canada approval for changes at the Peace Naturals Campus before the sale-leaseback transaction.
• Uncertainty regarding DEA rescheduling of U.S. Schedule I cannabis to Schedule III and its impact.
• Increased competition in the cannabis industry may lead to market consolidation and operational challenges.
• Inventory write-downs due to continued pricing pressures in Canadian markets may impact financial position.
• Potential volatility in the market price of common shares due to various factors beyond the company's control.