Canopy Growth to Acquire MTL Cannabis, Aiming to Become Largest Canadian Medical Cannabis Brand

Canopy Growth has announced plans to acquire Quebec-based MTL Cannabis in a
deal the company says will strengthen its position in Canada’s medical
marijuana market and support growing international demand. The announcement
was made in a company press release.

The transaction values MTL Cannabis at roughly $125 million CAD, with
Canopy paying a mix of cash and stock. Under the agreement, MTL
shareholders will receive a portion of Canopy shares plus a small cash
payment for each share they own. The deal also includes taking on and
settling MTL’s existing debt.

MTL Cannabis is known for its craft-style cultivation approach and has
built a strong reputation with consumers and retailers, particularly in
Quebec. Per the release, Canopy plans to combine MTL’s cultivation
expertise and brand strength with its own national and international
distribution network, especially in the medical cannabis segment.

Canopy expects the acquisition to help lower costs and improve efficiency
over time, estimating about $10 million CAD in annual savings once the
businesses are fully integrated. The company also believes the combined
operation will be better positioned to supply international medical
cannabis markets, where demand continues to grow.

For MTL Cannabis, the deal offers financial stability and access to
Canopy’s larger platform, while allowing its brands and cultivation
operations to continue under Canopy’s umbrella.

“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. Their
cultivation expertise, combined with our national scale, positions us to
improve product quality, expand supply, and accelerate our path to
profitable growth. Together, we’re building a stronger, more competitive
Canadian business for the long term.” — Luc Mongeau, Canopy Growth CEO

The acquisition still requires approval from shareholders, regulators, and
the courts, and is expected to close in early 2026 if all conditions are
met. According to the announcement, the deal is part of Canopy’s broader
strategy to focus on profitable segments of the cannabis industry,
particularly medical marijuana and global markets.