Canopy Growth Corporation is set to acquire MTL Cannabis Corp., a significant move that positions it among the leading Canadian cannabis producers. The transaction is valued at approximately $125 million on a fullydiluted equity basis and $179 million on an enterprise value basis. This acquisition aims to strengthen Canopy Growth’s market presence in Canada, particularly in Québec, while enhancing its capacity to meet international demand.
Details of the Acquisition
The deal is structured through a definitive arrangement agreement. Under this agreement, MTL shareholders will receive:
- 0.32 common shares of Canopy Growth for each MTL Share
- $0.144 in cash per MTL Share
This represents an implied consideration of $0.91 per MTL Share based on the closing price of Canopy Growth Shares as of December 12, 2025. Notably, this figure denotes a 45% premium over the average 20day volumeweighted average price of MTL shares.
Strategic Benefits of the Transaction
The acquisition is expected to generate significant synergies, with projections estimating approximately $10 million in runrate savings within 18 months. Canopy Growth also anticipates leveraging the experienced management team at MTL to enhance product quality and operational performance.
Background on MTL Cannabis
Founded by brothers Richard and Michel Clément in Québec, MTL Cannabis has garnered a reputation for producing highquality cannabis. The company’s commitment to quality resulted in its recognition as Canada’s top budtenderrecommended brand in the 2024 Brightfield Study. MTL’s expertise in craft cultivation is expected to complement Canopy Growth’s extensive resources.
Leadership Insights
Luc Mongeau, CEO of Canopy Growth, expressed optimism about the merger, saying it would solidify their leadership in Canada’s medical cannabis market. Richard Clément, CoFounder of MTL, highlighted that joining Canopy Growth will allow MTL to expand its reach and elevate cannabis standards across Canada.
This strategic acquisition underscores Canopy Growth’s commitment to expanding its footprint in the cannabis sector, responding to both local and international market demands effectively.