On December 15th, Canopy Growth Corporation announced its agreement to acquire MTL Cannabis Corp. This acquisition is priced at $125 million with a fully-diluted equity basis. In other terms, this acquisition is worth $179 million based on enterprise valuation. Shareholders at MTL Cannabis Corp will receive 0.32% of Canopy Growth’s shares and $0.144 in cash. However, shareholder and regulatory approval are needed before this transaction is legally recognised. It’s expected that MTL Cannabis Corp and Canopy Growth Corporation will close out this deal before February 2026.
If approved, this acquisition will change the playing field throughout Canada’s cannabis industry. It would result in Canopy Growth Corporation becoming the leading provider of medical cannabis in Canada. Three services could be integrated into one singular platform with Abba Medix, MTL Patient Network, and Canada House Clinics.
Canopy Growth will have an increased presence throughout Quebec if this agreement is approved, as MTL Cannabis and R’Belle operate two cultivation facilities throughout the province. In turn, Canopy’s reach & supply will be elevated, as MTL’s post-harvest assets & cultivation resources will be incorporated upon acquisition approval
MTL Financial Reports
During the second quarter of 2026 (September 2025), MTL Cannabis Corp reported a net revenue of $20.6 million. This resulted in a gross profit of $9.2 million and a net loss of $8.3 million over three months.
From September 2024 to 2025, MTL Cannabis Corp reported a net revenue of $84 million and an operating cash flow of $11 million. Reports also indicate that over the coming eighteen months, MTL expects an average of $10 million in annualised cost savings.
MTL Cannabis Corp has positioned itself for growth regardless of Canopy Growth’s acquisition. However, this agreement being approved would enable MTL to further its presence throughout Canada’s adult-use & medical cannabis markets.
Canopy Growth’s Financial Reports
During Q2 2026 (September 2025), Canopy Growth Corporation reported revenues of $83 million. Net revenues were listed at $66.7 million, with net losses being listed at $1.6 million. In terms of profits, Canopy witnessed a 30% increase in year-over-year sales in the adult-use cannabis market. There was also a 17% increase in year-over-year sales in the medical cannabis market. However, Canopy experienced a 39% decrease in year-over-year sales in the international market.
- Adult-Use Cannabis: $23.9 Million – 30% Increase.
- Medical Cannabis: $21.8 Million – 17% Increase.
- International Cannabis: $5 Million – 39% Decrease.
Board of Directors Unanimously Approves
This acquisition has been unanimously approved by Canopy Growth’s Board of Directors, with the same applying to MTL Cannabis’s Board of Directors. Both the MTL Special Committee and Board of Directors have recommended that shareholders vote in favour of this transaction being approved, as this will prioritise the company’s interests & future.
Canopy Growth Corporation confirmed that it’ll retain MTL’s leadership team, including CEO Michael Perron, and Co-Founders Richard & Michel Clement. Michael Perron will change roles, as he’ll leave the position of MTL’s Chief Executive Officer and become Canopy Growth’s Chief Operating Officer.
MTL Shareholders will benefit from this acquisition as well. They’ll receive 45% greater liquidity in Canopy Growth’s shares, while maintaining increased exposure to the global cannabis market. This will result in increased sales, prompting a higher valuation of Canopy’s shares.
