10:20 AM EDT, 03/16/2026 (MT Newswires) -- Canopy Growth ( CGC ) and MTL Cannabis ( MTLNF ) on Monday announced completion of their previously announced arrangement, whereby, among other things, Canopy Growth ( CGC ) has acquired all of the issued and outstanding common shares of MTL.

Among highlights, Canopy Growth ( CGC ) cited an expected run-rate synergies of approximately $10 million within 18 months.

"The combined company establishes Canada's leading medical cannabis platform and strengthens Canopy Growth's ( CGC ) broader business through expanded premium flower supply, enhanced operating execution and ability to meet demand in regulated international medical markets, including Europe. Additionally, the integration of a profitable, cash-generating business supports the company's objective of achieving positive adjusted EBITDA during fiscal 2027," said a Canopy statement.

As a result of the arrangement, MTL Cannabis ( MTLNF ) has become a wholly-owned subsidiary of Canopy Growth ( CGC ) and added that the MTL shares are expected to be de-listed from the Canadian Securities Exchange on or about March 16, 2026.

It further said that MTL shareholders are entitled to receive 0.32 of a Canopy Growth ( CGC ) common share (each whole share, a Canopy Growth Share) and $0.144 in cash in exchange for each MTL share held immediately prior to closing of the arrangement.

In aggregate, Canopy Growth ( CGC ) said it issued approximately 41.2 million Canopy Growth ( CGC ) shares and made a cash payment of approximately $18.5 million pursuant to the arrangement to Odyssey Trust Company in trust for MTL shareholders as consideration for their MTL shares.

In addition, the company added that around 2.95 million Canopy Growth ( CGC ) shares were issued under the arrangement to certain former shareholders of Montreal Cannabis Medical, Inc. (MC) in exchange for a release of all prior obligations owing to the former MC shareholders in connection with MTL's prior acquisition of MC.

The company also said that, effective upon closing of the arrangement, "key members" of MTL have joined the Canopy Growth ( CGC ) leadership team.

In addition, the companies said that MTL co-founders Richard Clement and Michel Clement will serve as strategic advisors to Canopy Growth ( CGC ), supporting integration and cultivation. With the transaction now complete, Canopy Growth ( CGC ) said it has commenced integration of MTL's cultivation and post-harvest operations into its supply chain.

"The acquisition of MTL is a defining step forward in strengthening Canopy Growth's ( CGC ) core Canadian business and advancing our path toward sustainable profitability," said Luc Mongeau, Chief Executive Officer, Canopy Growth ( CGC ). "We have long admired MTL and their approach to cannabis and business, and together we are Canada's leading medical cannabis company, complemented by a strong and accelerating adult-use platform within the country. Today, we are better positioned to deliver higher-quality products, operate more efficiently, and scale strategically to meet growing demand in international markets."

Canopy Growth's ( CGC ) shares were last seen up $0.025 to $1.435 on the Toronto Stock Exchange.

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