Company: CGC
Filing Date: 2025-06-06
Form Type: 424B5
Source: 0001104659-25-057337
Chunk: 9

Company: Canopy Growth Corp
Filing Date: 2025-06-06
Form: 424B5
Chunk 9
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. As of the date of this prospectus supplement, and except as described herein, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering and the Concurrent Canadian Offering. Other than as described herein, and as further described in the section of this prospectus supplement entitled “Use of Proceeds”, our management will have broad discretion as to the application of the net proceeds from this offering and the Concurrent Canadian Offering. The failure by our management to apply these funds effectively could harm our business, financial condition and results of operations.

There can be no assurance that we will not become a passive foreign investment company for U.S. federal income tax purposes, which could result in adverse U.S. federal income tax consequences to U.S. investors.

A non-U.S. corporation, such as our Company, will be classified as a “passive foreign investment company” (“PFIC”) for U.S. federal income tax purposes for any tax year, in which (a) 75% or more of its gross income for such tax year is passive income or (b) 50% or more of its gross assets by value either produce passive income or are held for the production of passive income, based on the quarterly average of the fair

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market value of such assets. We believe that we were not a PFIC for our most recently completed tax year. However, no assurance can be provided that we will not be classified as a PFIC for our current tax year or in the foreseeable future. Whether we are treated as a PFIC is fundamentally a factual determination that is made on an annual basis and depends, in part, on the nature and composition of our income and assets from time to time. Fluctuations in the market price of the Common Shares may cause us to be classified as a PFIC for the current or future tax years, because the value of our assets for purposes of the PFIC “asset test” (described below), including the value of our goodwill and other intangibles, may be determined by reference to the market price of the Common Shares, which could be volatile. In particular, declines in the market price of the Common Shares, and the manner in which we deploy our cash (including cash raised in this offering and the Concurrent Canadian Offering), could increase our risk of becoming a PFIC. No opinion of legal counsel or ruling from the IRS concerning the status of the Company as a PFIC has been obtained or