Canopy Growth To Acquire MTL Cannabis In CA$125M Deal
MTL was founded by Québec-based brothers, Richard and Michel Clément
Canopy Growth Corp. and MTL Cannabis Corp. announced that they have entered into a definitive arrangement agreement pursuant to which Canopy Growth will acquire all of the issued and outstanding common shares of MTL and will settle all debt and debt-like instruments owed by MTL, in a transaction valued at approximately $125 million on a fully-diluted equity basis and approximately $179 million on an enterprise value (TEV) basis.
Under the terms of the arrangement agreement, each shareholder of MTL will receive fixed consideration for each MTL Share equal to: (i) 0.32 of a common share of Canopy Growth (each whole share, a “Canopy Growth Share”), and (ii) $0.144 in cash.
MTL was founded by Québec-based entrepreneurs and brothers, Richard and Michel Clément, who built the company around a deep commitment to cultivating high-quality cannabis flower. The quality of the cannabis products produced by MTL’s disciplined, craft-driven cultivation approach has earned national recognition, including being named Canada’s No. 1 budtender-recommended brand in a 2024 Brightfield Study1. MTL brings proven operations excellence, loyal consumer demand, and a track record of producing cannabis that performs in the market. Canopy Growth intends to leverage the expertise of the MTL team as it continues to elevate its cannabis product portfolio.
“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. “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.”
“MTL was built on the idea that high-quality flower, grown with care and consistency, will always earn the trust of consumers and patients,” MLT Cannabis co-founder and Chief Cultivation Officer Richard Clément said. “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.”
Key transaction highlights for the agreement are available here.
1 Recognized as Canada’s No. 1 budtender-recommended brand in the 2024 Brightfield Study, Brightfield Group, Canadian Budtender Study 2024 (in partnership with O2O). Findings based on a survey of ~670 Canadian budtenders across multiple provinces in Canada.
