Canopy Growth Acquires MTL Cannabis to Lead Canadian Medical Cannabis Sector
Canopy Growth Corporation has announced its acquisition of MTL Cannabis Corp, marking a significant move in the Canadian medical cannabis sector. The transaction is valued at approximately $125 million on a fully diluted equity basis, with an enterprise value of around $179 million.
Acquisition Details
The definitive arrangement agreement specifies that each shareholder of MTL will receive 0.32 of a Canopy Growth Share and $0.144 in cash for each MTL Share held. This presents a 45% premium compared to MTL’s average trading price as of December 12, 2025.
Strategic Implications
This acquisition aims to strengthen Canopy Growth’s presence in Québec, Canada’s second-largest cannabis market. MTL’s expertise and product lines will enhance Canopy Growth’s operational efficiency and product quality.
Key Benefits of the Transaction
- Expected annual run-rate synergies of approximately $10 million within 18 months.
- Introduction of MTL’s high-quality product portfolio to a broader national distribution network.
- Integration of MTL’s management team to drive operational performance.
Market Leadership
The combined resources are anticipated to elevate Canopy Growth to the leading position in Canada’s medical cannabis market. MTL has been recognized as the top budtender-recommended brand in Canada according to a 2024 Brightfield Study.
Operational Expansion
MTL operates two cultivation facilities and boasts a strong product lineup, including cannabis flower and hash products sold under the MTL and R’Belle brands. The acquisition will bolster Canopy Growth’s market position, especially in Québec.
Shareholder Benefits
- MTL shareholders will gain improved liquidity through Canopy Growth’s larger trading volume.
- Shareholders will have exposure to Canopy Growth’s international operations across Europe and Australia.
Transaction Approval Process
The arrangement requires approval from MTL shareholders and regulatory inputs, with a meeting anticipated in early 2026. Retention of MTL’s management team aligns with Canopy Growth’s long-term strategic goals.
Conclusion
This acquisition not only aims to solidify Canopy Growth’s leadership in the Canadian medical cannabis industry but also positions the company for sustainable growth in both domestic and international markets.
