Canopy Growth have entered into a definitive arrangement agreement, where 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 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 #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 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. 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," said Luc Mongeau, Chief Executive Officer, Canopy Growth.
"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.
For more information:
Canopy Growth Corp.
[email protected]
canopygrowth.com
