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2w ago

Canopy Growth to Acquire MTL Cannabis in C$125 Million Cash-and-Stock Deal

The transaction targets leadership in medical cannabis with greater scale for high-quality flower.

Staff work in a marijuana grow room that can be viewed by at the new visitors centre at Canopy Growths Tweed facility in Smiths Falls, Ont., on Aug. 23, 2018. THE CANADIAN PRESS/Sean Kilpatrick
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Overview

  • Under a definitive arrangement, MTL shareholders will receive 0.32 of a Canopy Growth share plus C$0.144 in cash per MTL share, and Canopy will settle all MTL debt.
  • The deal implies an enterprise value of about C$179 million and an estimated C$0.91 per MTL share, a 45% premium to the 20-day VWAP as of December 12, 2025.
  • Closing is expected before the end of February 2026, pending shareholder, court, and regulatory approvals.
  • Canopy highlights expanded reach through Canada House clinics and the Abba Medix online platform, a stronger footprint in Québec, and roughly C$10 million in annualized cost synergies within 18 months.
  • MTL reported trailing 12‑month net revenue of C$84 million, a 51% gross margin before fair value adjustments, and C$11 million in operating cash flow as of September 30, while Canopy held C$298 million in cash and equivalents.