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Canopy Growth buys out MTL Cannabis

Published on January 16, 2026 by Pat Bulmer

Photo: Contributed

Now that its future is secure, Canopy Growth is swallowing up another large Canadian cannabis company.

The Smiths Falls, Ont.-based company is buying all shares of Quebec’s MTL Cannabis in a $125-million deal

The transaction is “expected to create Canada’s leading medical cannabis business and enhance capacity to serve growing international demand,” Canopy Growth said in a December news release.

Canopy said the purchase will also increase its presence in Quebec and expand distribution of MTL’s products across the country.

Canopy Growth expects the merger will created “synergies of approximately $10 million within 18 months” — aka cuts.

MTL was founded by brothers Richard and Michel Clément. “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 Study,” Canopy’s press release said.

“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 Quebec,” said Canopy CEO Luc Mongeau.

“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 of MTL.

Medical cannabis is a key to this deal. That has become Canopy Growth’s focus lately, particularly through its Spectrum Therapeutics division, while MTL operates Abba Medix. Abba Medix focuses on medical cannabis for veterans. Related company Canada House Clinics operates clinics across Canada.

MTL has a 57,000 square-foot grow facility in Pointe Claire, Que., and owns IsoCanMed Inc., a licensed producer with 64,000 square feet in Louiseville, Que.

“Canopy Growth intends to fully integrate MTL’s cultivation and post-harvest assets into its supply chain. The resulting increase in high-quality flower supply is expected to enhance the company’s ability to meet growing demand in the European medical cannabis market and support continued category growth in Canada.”

MTL shareholders will get a 45% premium on their shares, Canopy Growth said.

The deal, already approved by both companies’ boards of directors, is expected to be finalized by the end of February.

In a recent financial report, Canopy Growth made the stunning announcement that: “Conditions that previously raised substantial doubt concerning the company’s ability to continue as a going concern have been resolved.”

And just this month, the company reported it rearranged its debts so they can be paid off later, leaving more cash available now.

The loan maturity dates “of all outstanding indebtedness” have been extended to January 2031, the company said.

“At the conclusion of these transactions, Canopy Growth is expected to have cash on hand of approximately C$425 million, providing additional flexibility to support the company’s long-term priorities,” a news release said.

“We have created a financial runway through 2031,” said CFO Tom Stewart.

In a quarterly financial report in November, MTL reported $20 million in net revenues and a positive EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.2 million. Canopy said the deal is expected to “support its goal of achieving positive adjusted EBITDA.”

In an update this month, MTL touted a strong cash flow, along with increased revenues from the latest quarter and year to date.