Canopy Growth Clears Major Hurdle in MTL Cannabis Acquisition

Canopy Growth Corporation has successfully navigated a critical phase in its proposed acquisition of MTL Cannabis Corp., moving the deal significantly closer to completion. The transaction received overwhelming support from MTL’s shareholders during a special meeting held this week.

Near-Unanimous Shareholder Approval

At the meeting, shareholders of MTL Cannabis voted decisively in favor of the arrangement. According to a company statement released Wednesday, approximately 99.97% of the votes cast were for the special resolution approving the deal.

Even after excluding votes that cannot be counted under Canada’s Multilateral Instrument 61-101—a regulation designed to protect minority shareholders in specific transactions—the level of support remained exceptionally high at 99.80%. Voter turnout was robust, with around 89% of MTL’s eligible shareholders participating in the ballot.

Path to Closing and Strategic Vision

While the shareholder vote represents a major step forward, the acquisition is not yet finalized. Completion remains subject to customary closing conditions, including final court approval and consent from other third parties.

Canopy Growth anticipates closing the transaction before the end of March. CEO Luc Mongeau stated that the combined entity aims to establish Canada’s premier medical cannabis company, leveraging MTL’s cultivation capabilities alongside Canopy Growth’s scale and infrastructure.

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Financial Backdrop and Market Performance

This shareholder decision follows Canopy Growth’s recent release of its third-quarter financial results for fiscal year 2026. The company reported a year-over-year reduction in its net loss of 49%, alongside a 17% improvement in its adjusted EBITDA loss.

As of December 31, 2025, Canopy Growth held a cash position of 371 million Canadian dollars and a net cash position of 146 million CAD. Furthermore, the company completed a strategic recapitalization in January, which extended the maturity dates for all its outstanding debt obligations to 2031.

The Canadian market has shown positive momentum for the company. For the second quarter of FY2026, Canopy Growth reported a 30% year-over-year increase in adult-use (recreational) cannabis revenue and a 17% rise in medical cannabis sales.

Attention now turns to securing the remaining court and regulatory approvals necessary to finalize the MTL acquisition by the targeted March deadline.