Ontario’s Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC) (FRA: 11L) just made the strategic decision to acquire MTL Cannabis Corp (CNSX: MTLC) (OTCMKTS: MTLNF) (FRA: J4E). The definitive deal is valued at C$179 million based on MTL’s enterprise value or C$125 million on a fully-diluted equity basis.
The terms are straightforward: for each MTL share, stockholders get 0.32 Canopy shares plus a modest C$0.14 in cash. Those numbers represent a solid 45 per cent premium over MTL’s recent trading average.
The deal is expected to close in early 2026 once regulatory approvals have been obtained.
Through the acquisition, Canopy will be adding some artisanal flair to its large scale portfolio of operations. Quebec-based MTL is renowned for being a top-notch small-batch flower producer that is highly popular amongst Canadian budtenders and consumers.
“The strength of their team and the trust they’ve earned from consumers and patients across Canada make this an excellent fit for our future direction,” said Canopy chief executive, Luc Mongeau.
MTL’s two cultivation facilities will complement the distribution capacity, retail ties and global reach of Canopy Growth. The takeover target has a profitable track record. MTL’s trailing 12-month revenue is sitting at approximately C$84 million.
Moreover, MTL’s strong market position in Quebec is expected to strengthen Canopy’s stature in the Canadian market significantly. It is among the country’s top provinces for sales alongside Ontario, Alberta and BC.
MTL Cannabis earned its spot on the top-tier OTC market, the OTCQX, in June this year.
Canopy Growth Stock $CGC Climbs on $91M Deal to Buy Out MTL Cannabis$TLRY $SPY $QQQ $IWM $RUT pic.twitter.com/f7k6rNCnmV
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