Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) is providing this bi-weekly update on the status of the management cease trade order granted on June 2, 2023 (the “MCTO”) by its principal regulator, the Ontario Securities Commission under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”), following the Company’s announcement on May 26, 2023 (the “DefaultAnnouncement”) that the Company has initiated an internal review of the financial reporting matters related to BioSteel Sports Nutrition Inc. (the “BioSteel Review”) and has determined that it will need to restate its (i) audited consolidated financial statements for the fiscal year ended March 31, 2022, included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022 and (ii) unaudited consolidated financial statements for the quarterly periods ended June 30, 2022, September 30, 2022 and December 31, 2022, included in the Corporation’s Quarterly Reports on Form 10-Q for such quarterly periods (collectively, the “Restated Financial Statements”).
The Company reports that: (i) there are no changes to the information contained in the Default Announcement that would reasonably be expected to be material to an investor; (ii) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines under NP 12-203 and issue bi-weekly default status reports until the Restated Financial Statements are filed, each of which will be issued in the form of a press release; (iii) there has not been any other specified default by the Company under NP 12-203, and, except as set forth below, no such other default is anticipated; (iv) the Company is not subject to any insolvency proceedings; and (v) there is no material information concerning the affairs of the Company that has not been generally disclosed.
The Company continues to work with its auditors to complete the Restated Financial Statements further to the Company’s recent filing of Form 12b-25 with the U.S. Securities and Exchange Commission. While the Company is continuing to work diligently to complete the BioSteel Review and the Restated Financial Statements it will not report its Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (the “2023 10-K”) on or before the expiration of the 15 calendar day extension provided by Rule 12b-25(b) but expects to file on or before June 23, 2023.
