Canopy Growth Corporation has completed the acquisition of MTL Cannabis Corp., creating Canada's leading medical cannabis business by revenue. The acquisition is expected to result in run-rate synergies of approximately $10 million within 18 months. The combined company aims to achieve positive adjusted EBITDA during fiscal 2027.
The transaction has strengthened Canopy Growth's core Canadian platform, providing additional high-quality flower to support international growth. The leadership team and operational depth of Canopy Growth have been reinforced through the addition of MTL management team members.
The acquisition has led to the integration of a profitable, cash-generating business, which supports Canopy Growth's objective of achieving sustainable profitability. Notably, the acquisition is expected to accelerate margin and establish a path toward EBITDA improvement.
Key members of MTL have joined the Canopy Growth leadership team, adding operational depth and positioning the company for consistent execution and scalable growth. This includes individuals such as Luc Mongeau as Chief Executive Officer, Tom Stewart as Chief Financial Officer, and Michael Perron as Chief Operating Officer.
The strategic benefits of the acquisition include strengthening Canopy Growth's leadership in Canadian medical cannabis and market share position, enhancing flower supply for Canadian and international markets, deepening Quebec presence, and improving competitive positioning across core adult-use categories.
As a result of the arrangement, MTL Cannabis has become a wholly-owned subsidiary of Canopy Growth, and the MTL shares are anticipated to be de-listed from the Canadian Securities Exchange on or about March 16, 2026. The acquisition involved the issuance of approximately 41.2 million Canopy Growth shares and a cash payment of approximately $18.5 million.
The acquisition has also led to the retention of MTL's leadership, including Mike Perron as Chief Operating Officer, and Richard Clément and Michel Clément in strategic consulting roles, adding deep expertise in cultivation, genetics, and facility operations.
The acquisition has strengthened Canopy Growth's position in the cannabis industry, enhancing its capabilities and market share in both medical and adult-use cannabis segments. The market has reacted to these announcements by moving the company's shares -2.46% to a price of $1.19. If you want to know more, read the company's complete 8-K report here.
