Canopy Growth announced the acquisition of MTL Cannabis, enhancing its capacity in the medical cannabis market.
The transaction is valued at approximately $125 million on a fully-diluted equity basis.
MTL brings proven operations excellence, loyal consumer demand, and a track record of producing high-quality cannabis products.
Accretive Combination
Expected to generate significant run-rate synergies of approximately $10 million within 18 months.
Premium Offer
Implied consideration of $0.91 per MTL Share represents a 45% premium to the average 20-day VWAP of MTL Shares.
Strategic Expansion
Strengthens Canopy Growth's presence in Québec and expands national distribution of MTL's product portfolio.
Management Integration
MTL's core team expected to join Canopy Growth to drive cultivation excellence and enhance product quality.
- The acquisition is expected to elevate Canopy Growth to a leading position in Canada's medical cannabis market.
- MTL's patient network and established online medical channel expand Canopy Growth's reach and support for patients nationwide.
- Canopy Growth plans to integrate MTL's production assets to bolster flower supply for Canadian and international markets.
The acquisition of MTL Cannabis positions Canopy Growth as a stronger player in the Canadian cannabis market, enhancing its strategic presence and production capabilities.