Canopy Growth Corporation has agreed to acquire all issued and outstanding common shares of MTL Cannabis Corp. for a fully‑diluted equity consideration of approximately $125 million, or $179 million on an enterprise‑value basis. The deal represents a 45 % premium to MTL’s average 20‑day volume‑weighted average price as of December 12, 2025, and will be paid in 0.32 Canopy Growth shares and $0.144 in cash per MTL share.
MTL Cannabis reported trailing‑12‑month net revenue of $84 million as of September 30, 2025, a figure that far exceeds the $30 million cited in the original article. The company’s gross margin stood at 51 % before fair‑value adjustments, and it generated $11 million in operating cash flow during the same period. MTL’s established patient network, clinic footprint, and online medical platform provide a ready‑made distribution channel that will accelerate Canopy’s market‑share gains in key provinces, especially Quebec.
Canopy’s Q2 FY2026 results showed consolidated net revenue of $67 million, with cannabis net revenue of $51 million and a gross margin of 33 %. CEO Luc Mongeau emphasized that the acquisition “brings skilled operators, strong brands, and a profitable business that will strengthen our leadership in Canada’s medical market and deepen our presence in key adult‑use markets, including Québec.” The deal aligns with Mongeau’s broader turnaround strategy, which focuses on adjusted EBITDA growth, operational efficiency, and debt reduction.
Management expects the transaction to be highly accretive, generating run‑rate synergies of roughly $10 million within 18 months through cost sharing, streamlined supply chains, and expanded product offerings. The integration of MTL’s cultivation assets is projected to enhance flower supply for both Canadian and international markets, further supporting Canopy’s profitability targets.
The announcement was well received by investors, reflecting confidence in the strategic fit and potential upside. The broader cannabis sector also benefited from positive sentiment surrounding potential U.S. federal rescheduling, which could open new market opportunities for Canadian producers.
The transaction is subject to customary closing conditions, including regulatory approvals and shareholder consent, and is expected to close before the end of February 2026.
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