Canopy Growth Completes Acquisition of MTL Cannabis

SMITHS FALLS – Canopy Growth Corp. has finalized the purchase of MTL Cannabis Corp. solidifying its position as the largest medical Cannabis company in Canada by revenue bolstered by added cultivation assets and patient channels.

The transaction, first agreed upon late last year, closed on March 16 after strong shareholder support. Under the terms, Canopy Growth paid MTL shareholders 0.32 of its own common share plus 14.4 Canadian cents in cash for each MTL share. In total, the company issued about 41.2 million of its shares and handed over roughly C$18.5 million in cash. It also issued another 2.96 million shares to settle prior obligations tied to MTL’s earlier purchase of Montreal Cannabis Medical.

MTL Cannabis now operates as a wholly owned subsidiary. Its shares will delist from the Canadian Securities Exchange shortly. The deal gives Canopy Growth access to MTL’s patient base, Canada House clinics and ABBA Medix online platform. Those assets helped position the combined operation as the top medical Cannabis business in Canada by revenue, based on the companies’ internal review of public filings through December 2025.

The purchase also brings MTL’s cultivation and processing sites in Quebec, deepening Canopy Growth’s presence in the country’s second-largest Cannabis market. Company officials said the added high-quality flower supply will help serve both domestic patients and regulated medical demand in Europe and other international markets.

Executives highlighted operational gains. “The acquisition of MTL is a defining step forward in strengthening Canopy Growth’s core Canadian business and advancing our path toward sustainable profitability,” said Luc Mongeau, Canopy Growth’s CEO. He noted the deal pairs medical leadership with an improving adult-use platform.

Mike Perron, former chief executive of MTL and now COO at Canopy Growth, added that the focus on disciplined operations and quality will reach more patients and consumers. Richard Clément, co-founder of MTL, welcomed the integration of the teams.

The companies expect the transaction to deliver about C$10 million in annual run-rate synergies within 18 months. MTL has operated as a profitable, cash-generating business with tight cost controls. Canopy Growth said the addition should speed margin expansion and support its goal of positive adjusted EBITDA in fiscal 2027.

The deal comes as Canada’s Cannabis industry continues to see consolidation. This transaction fits a pattern of strategic buys that bring profitable assets into bigger platforms. The retention of key MTL leaders and the immediate addition of premium flower capacity should help Canopy Growth execute more effectively in both Canada and export markets. While share dilution is a factor, the focus remains on measurable progress toward profitability rather than speculation.