On March 16, 2026, Canopy Growth Corporation (“Canopy Growth”), the Smiths Falls, Ontario-based cannabis company, completed its acquisition of MTL Cannabis Corp. (“MTL Cannabis”) by way of a plan of arrangement, creating Canada's leading medical cannabis business by revenue. Under the arrangement, Canopy Growth acquired all of the issued and outstanding common shares of MTL Cannabis, which became a wholly-owned subsidiary, with the MTL shares delisted from the Canadian Securities Exchange on or about closing. MTL shareholders were entitled to receive 0.32 of a Canopy Growth common share and $0.144 in cash for each MTL share held, with Canopy Growth issuing approximately 41.2 million shares and paying approximately $18.5 million in cash in aggregate; an additional 2,956,391 Canopy Growth shares were issued to certain former shareholders of Montreal Cannabis Medical, Inc., subject to an 18-month transfer restriction. The arrangement received overwhelming support from MTL shareholders at a special meeting held February 17, 2026.
The combined company strengthens Canopy Growth's core Canadian platform by providing additional high-quality flower to support international growth, with expected run-rate synergies of approximately $10 million within 18 months. The acquisition adds MTL Cannabis's Quebec cultivation facilities, including a 76,000-square-foot facility in Pointe-Claire and a 64,000-square-foot facility in Louiseville, and the integration of a profitable, cash-generating business supports Canopy Growth's objective of achieving positive adjusted EBITDA during fiscal 2027. Canopy Growth's leadership team and operational depth were strengthened through the addition of MTL management team members, with Mike Perron, MTL's former chief executive officer, becoming Canopy Growth's chief operating officer, and MTL co-founders Richard Clément and Michel Clément serving as strategic advisors. The combined platform enhances Canopy Growth's ability to meet demand in regulated international medical markets, including Europe.
Farris LLP acted as counsel to MTL Cannabis, with a team led by Daniel Everall (M&A/Securities) that included Tim Louman-Gardiner (Litigation); David Selley and Kurtis Harms (Competition); Ben Kaardal (M&A/Securities); and Nick Allen (Banking). Dorsey & Whitney LLP also acted as counsel to MTL Cannabis.
Cassels Brock & Blackwell LLP acted as counsel to Canopy Growth, with a team that included Jonathan Sherman, Tayyaba Khan, Reza Sarsangi, and Rachel Binder (M&A/Cannabis); Daniel Cipollone and Timon Li (Banking & Specialty Finance); Tera Li Parizeau (Tax & Trusts); Caitlin Russell (Employment & Labour); Jessica Lewis (Litigation); Amanda Metallo, Nicola Geary, and Aditi Mallavarapu (Business); Cory Sherman and Vanessa Groves (Real Estate & Development); and Camille Dunbar (Insurance & Reinsurance). Paul Hastings LLP also acted as counsel to Canopy Growth.