Canopy Growth Corporation (TSX:WEED, NYSE:CGC) announced that it has agreed to acquire MTL Cannabis (CSE:MTLC) in a transaction valued at approximately C$125 million on a fully diluted equity basis and about C$179 million on an enterprise value basis.
Under the terms of a definitive arrangement agreement, Canopy Growth will acquire all issued and outstanding shares of MTL Cannabis and settle the target’s outstanding debt and debt-like instruments.
MTL shareholders will receive fixed consideration of 0.32 of a Canopy Growth common share and C$0.144 in cash for each MTL share held.
Based on Canopy Growth’s closing share price on the Toronto Stock Exchange on Dec. 12, 2025, the consideration implies a value of C$0.91 per MTL share, representing a 45% premium to MTL’s 20-day volume-weighted average price on the Canadian Securities Exchange as of that date.
MTL Cannabis was founded by Québec-based entrepreneurs Richard and Michel Clément and focuses on the cultivation of cannabis flower.
The company has received industry recognition for its products, including being named Canada’s top budtender-recommended brand in a 2024 Brightfield Study, according to the release.
MTL’s core management team is expected to join Canopy Growth following completion of the transaction.
Canopy Growth said the transaction is expected to strengthen its presence in Québec and expand national distribution of MTL’s product portfolio. The company also said it expects the combination to generate run-rate synergies of approximately C$10 million within 18 months of closing.
“MTL brings skilled operators, strong brands, and a profitable business that will strengthen our leadership in Canada’s medical market and deepens our presence in key Canadian adult-use markets, including Québec,” Canopy Growth CEO Luc Mongeau said in a statement. “Their cultivation expertise, combined with our national scale, positions us to improve product quality, expand supply, and accelerate our path to profitable growth.”
MTL Cannabis co-founder and chief cultivation officer Richard Clément highlighted the two companies’ highly complementary portfolios, adding, “We see a strong opportunity to expand MTL’s reach through Canopy Growth’s national distribution and retail relationships.”
Both companies saw their shares move higher on the news. Canopy Growth’s US-listed stock was up 16.1%, while MTL Cannabis gained 10%.
In Toronto, Canopy Growth shares were up 12.8% while MTL Cannabis stock added 15.6%.