Risk Factors Update Summary

• The company may recognize significant impairments in the carrying value of our investment in MedMen, valued at $32,000 as of May 31, 2024.
• The company may have to recognize significant impairments in the carrying value of its investment in MedMen due to ongoing restructuring or liquidation undertakings.
• The ongoing conflict between Israel and Hamas and the invasion of Ukraine by Russia could adversely affect our business due to geopolitical tensions and market disruptions.
• Additional impairments of goodwill and intangible assets could materially impact financial results, affecting long-term profitability.
• As of May 31, 2024, our goodwill and intangible assets totaled $2.0 billion and $915 million, respectively, impacting financial stability.
• Potential regulatory developments in the U.S. may broaden medical access to cannabis, impacting market opportunities.
• The integration of operations from the HEXO acquisition may require substantial resources, diverting management attention and potentially leading to inefficiencies.
• Revenue from Canadian adult-use cannabis increased to $266,846, up from $214,319, reflecting growing market demand.
• Our beverage alcohol businesses face competition, with SweetWater, Montauk, and Breckenridge potentially experiencing fluctuations in prices and market share.
• The company is now the 5th largest craft brewer in the U.S., enhancing its competitive position in the beverage alcohol market.