Canopy Growth Corporation ( CGC ) has agreed to acquire MTL Cannabis Corp. ( MTLNF ) in a cash-and-stock transaction valued at approximately 125 million Canadian dollars on a fully diluted equity basis, or about 179 million Canadian dollars on an enterprise value basis.

The acquisition will be completed through a court-approved plan of arrangement and includes the settlement of all MTL debt and debt-like instruments.

Under the agreement, MTL shareholders will receive 0.32 of a Canopy Growth ( CGC ) common share and 0.144 Canadian dollars in cash for each MTL share.

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The implied value of 0.91 Canadian dollars per share represents a 45% premium to MTL’s 20-day volume-weighted average price as of December 12, 2025. Closing is expected before the end of February 2026, subject to shareholder, court, and regulatory approvals.

Canopy Growth ( CGC ) reported 298 million Canadian dollars in cash and cash equivalents as of September 30, 2025.

Strategic Fit

The transaction is expected to elevate Canopy Growth ( CGC ) to a leading position in Canada’s medical cannabis market. MTL adds a complementary patient network, Canada House clinics, and the Abba Medix online medical platform, expanding Canopy’s national reach.

The deal also strengthens Canopy’s presence in Québec and improves access to high-quality flower supply for Canadian and international medical markets, including Europe.

MTL reported trailing twelve-month net revenue of 84 million Canadian dollars, gross margin of 51% before fair value adjustments, and operating cash flow of 11 million Canadian dollars as of September 30, 2025.

Canopy expects annualized cost synergies of about 10 million Canadian dollars within 18 months, supporting its path toward positive adjusted EBITDA.

Management Commentary

“MTL brings skilled operators, strong brands, and a profitable business that will strengthen our leadership in Canada’s medical market,” said Canopy Growth ( CGC ) CEO Luc Mongeau.

MTL Co-Founder and Chief Cultivation Officer Richard Clément said the combination will allow MTL to expand its reach through Canopy’s national distribution and retail relationships.

MTL’s core leadership team is expected to join Canopy Growth ( CGC ) following closing, with MTL CEO Michael Perron set to become Chief Operating Officer.

CGC Price Action: Canopy Growth ( CGC ) shares were up 1.72% at $1.77 at the time of publication on Monday, according to Benzinga Pro data.

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