Canopy Growth to acquire MTL Cannabis in $125m deal

Canopy Growth has agreed a deal to acquire MTL Cannabis, acquiring all shares and settling MTL’s debt,

The Canadian firm, in an announcement, said each MTL shareholder will receive for every share they own, 0.32 of a Canopy Growth shares and $0.144 in cash.

It values MTL at around $125 million - with the 'enterprise value' pitched at $179 million - and, Canopy noted that closing is expected before the end of February, subject to approvals.

“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.

MTL was founded by Québec-based brothers Richard and Michel Clément and operates cultivation and post-harvest assets, patient channels and clinics, the company said in the statement.

The release said MTL reported net revenue of $84 million, a 51% gross margin before fair value adjustments, and $11 million in operating cash flow in the trailing twelve-month period ended September 30, 2025. The company said it expects potential cost synergies of approximately $10 million on an annualized basis to be realised over 18 months.

The Recap

• Canopy Growth will acquire MTL Cannabis for approximately $125 million.
• Shareholders receive 0.32 Canopy Growth share and $0.144 cash.
• Closing expected before the end of February, subject to approvals.