Staff work in a marijuana grow room at Canopy Growth's Tweed facility in Smiths Falls, Ont., in 2018.Sean Kilpatrick/The Canadian Press
Canopy Growth Corp. WEED-T has signed a deal to buy Quebec-based MTL Cannabis Corp. MTLC-CN in a transaction valued at about $125-million.
The deal is expected to help boost Canopy Growth’s position in Canada’s medical cannabis market.
Canopy Growth chief executive Luc Mongeau says MTL’s cultivation expertise, combined with his company’s scale, positions it to improve product quality, expand supply and accelerate its path to profitable growth.
Under the terms of the agreement, MTL shareholders will receive 0.32 of a common share of Canopy Growth and 14.4 cents in cash for each MTL share they hold.
Canopy shares closed at $2.40 on the Toronto Stock Exchange on Friday.
The deal requires regulatory and MTL shareholder approval. Closing of the transaction is expected to occur before the end of February.