MTL Cannabis Shares Surge 50% on Canopy Growth Buyout
A transformative acquisition occurred in the cannabis industry this morning. The timing of the deal is particularly noteworthy, as President Donald Trump is expected to sign an executive order reclassifying marijuana as soon as today.
Canopy Growth (TSX: WEED)(Nasdaq: CGC) has announced a definitive agreement to acquire MTL Cannabis (CSE: MTLC)(OTCQX: MTLNF) in a transaction valued at approximately $125 million on a fully diluted equity basis, or about $179 million including debt. The deal is expected to be highly accretive, with projected annual run-rate synergies of roughly $10 million within 18 months. Under the terms of the agreement, MTL shareholders will receive a combination of Canopy Growth shares and cash, representing an implied value of $0.91 per MTL share—a 45% premium to MTL’s 20-day average trading price. The acquisition is positioned to strengthen Canopy Growth’s footprint in Québec while creating what the company expects will be Canada’s leading medical cannabis platform, with expanded capacity to meet rising international demand.
MTL Cannabis is recognized for its craft-focused cultivation model and consistently high-quality flower, earning the distinction of Canada’s top budtender-recommended brand in 2024. Founded by Québec-based entrepreneurs Richard and Michel Clément, MTL brings strong operational expertise, brand loyalty, and cultivation excellence to the combined company. Canopy Growth plans to retain MTL’s core management team, leveraging their experience to enhance product quality, improve operational performance, and broaden the national distribution of MTL’s established product portfolio.
“MTL was built on the idea that high-quality flower, grown with care and consistency, will always earn the trust of consumers and patients. Joining Canopy Growth gives us the platform to bring that philosophy to more Canadians. Our respective portfolios are highly complementary, and we see a strong opportunity to expand MTL’s reach through Canopy Growth’s national distribution and retail relationships. We’re incredibly proud of what our team has built and look forward to working with Canopy Growth to continue elevating Canadian cannabis,” said Richard Clément, Co-Founder and Chief Cultivation Officer, MTL Cannabis.
Shares of Canopy Growth Corporation (WEED) are currently down 3.75% at $2.31, while its U.S.-listed shares (CGC) have declined 3.53% to $1.6785. In contrast, shares of MTL Cannabis Corp. (MTLC) are surging 54% to $0.77, with its U.S. OTC shares (MTLNF) up 39.85% at $0.5659 during mid-afternoon trading.
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