Link: https://stratcann.com/news/canopy-growth-to-acquire-mtl-cannabis/
Outlet: STRATCANN
Canopy Growth to acquire MTL Cannabis
DECEMBER 15, 2025
SARAH CLARK
Canopy Growth Corporation has reached a definitive agreement to purchase MTL Cannabis Corp. The acquisition is valued at $125 million on a fully-diluted equity basis, or $179 million based on enterprise value.
Under the terms of the agreement, MTL shareholders will receive fixed consideration for each MTL Share, consisting of 0.32 of a Canopy Growth Share and $0.144 in cash. The transaction requires shareholder and regulatory approvals and is expected to close before the end of February 2026.
The acquisition is set to make Canopy Growth the leading medical cannabis provider in Canada by integrating MTL’s patient network, Canada House clinics, and the Abba Medix online medical platform. The acquisition also strengthens Canopy Growth’s regional presence and operational footprint in Québec by adding two cultivation facilities and the MTL and R’Belle brands, placing it in the seventh position in total adult-use cannabis market share in Canada.
The deal will also enhance Canopy’s supply and reach by incorporating MTL’s cultivation and post-harvest assets, supporting the supply of cannabis flower for both Canadian and international markets, particularly the European medical cannabis market.
MTL reported $84 million in net revenue and $11 million in operating cash flow in the previous twelve-month period ending September 30, 2025. Over the next 18 months, the company expects to achieve approximately $10 million in annualized cost savings.
“MTL brings skilled operators, strong brands, and a profitable business that will strengthen our leadership in Canada’s medical market and deepens our presence in key Canadian adult-use markets, including Québec,” said Luc Mongeau, CEO, Canopy Growth. “Their cultivation expertise, combined with our national scale, positions us to improve product quality, expand supply, and accelerate our path to profitable growth. Together, we’re building a stronger, more competitive Canadian business for the long term.”
Canopy Growth plans to retain core members of MTL’s leadership team, including co-founders Richard and Michel Clément, and CEO Michael Perron, who will become Canopy Growth’s chief operating officer. MTL Shareholders, in turn, will receive approximately 45%, greater liquidity through Canopy Growth Shares, and increased exposure to the global cannabis market, including the US, through Canopy USA.
“MTL was built on the idea that high-quality flower, grown with care and consistency, will always earn the trust of consumers and patients,” said Richard Clément, co-founder and chief cultivation officer, MTL Cannabis. “Joining Canopy Growth gives us the platform to bring that philosophy to more Canadians. Our respective portfolios are highly complementary, and we see a strong opportunity to expand MTL’s reach through Canopy Growth’s national distribution and retail relationships. We’re incredibly proud of what our team has built and look forward to working with Canopy Growth to continue elevating Canadian cannabis.”
The transaction was unanimously approved by the Board of Directors of Canopy Growth and the Board of Directors of MTL Cannabis (with conflicted directors abstaining) following the unanimous recommendation of a special committee of the MTL Board of Directors.
The MTL Special Committee and the Board of Directors unanimously recommended that MTL shareholders vote in favour of the transaction after determining it to be fair and in the best interests of MTL Cannabis.
Canopy Growth reported $83 million in revenue in the three months ended September 30, 2025 (Q2 2026), $66.7 million in net revenue, and a net loss of $1.6 million. The company is expected to announce its next earnings report on February 6, 2026.
Canopy’s net revenue from adult-use cannabis sales was $23.9 million in Q2 2026, a 30% increase year-over-year, while Canadian medical cannabis accounted for another $21.8 million, a 17% increase year-over-year. Sales of medical cannabis in the international market accounted for another $5.1 million, a decrease of 39% from the same quarter in the prior year.
MTL Cannabis Corp. reported $20.6 million in net revenue in the three months ended September 30, 2025 (Q2 2026), gross profit of $9.2 million, and a net loss of $8.3 million.