Canopy Growth Acquires MTL Cannabis with 41.2M Shares and $18.5M Cash
Canopy Growth has completed its acquisition of all MTL Cannabis shares by issuing 41.2 million common shares and paying $18.5 million in cash. The deal creates Canada’s top medical cannabis business by revenue, adds a profitable unit and supports positive adjusted EBITDA in fiscal 2027.
1. Transaction Terms and Closing
Canopy Growth acquired 100% of MTL Cannabis by issuing approximately 41.2 million new common shares and paying $18.5 million in cash. MTL shareholders received 0.32 Canopy Growth shares plus $0.144 cash per share, while 2.96 million shares issued to former MC Cannabis shareholders carry an 18-month hold period.
2. Creation of Leading Medical Cannabis Platform
The combined entity commands the number-one market share by revenue in Canada’s medical cannabis sector, bolstered by MTL’s patient network, Canada House clinics and online channel ABBA Medix. Integration of MTL’s premium flower supply enhances capacity to meet demand in domestic and regulated international medical markets, including Europe.
3. Financial and Profitability Impact
MTL contributes a profitable, cash-generating operation expected to accelerate margin expansion and drive positive adjusted EBITDA by fiscal 2027. The acquisition strengthens Canopy Growth’s path to sustainable profitability through enhanced cost discipline and scale benefits across core adult-use and medical segments.
4. Integration and Leadership Retention
Key MTL executives, including former CEO Mike Perron as Chief Operating Officer and co-founders Richard and Michel Clément as strategic advisors, have joined Canopy Growth’s leadership team. This retention deepens expertise in cultivation, genetics and facility operations to ensure seamless integration and scalable growth.