Canopy Growth Acquisition Clears Major Shareholder Hurdle

Canopy Growth CA1380351009

The proposed acquisition of MTL Cannabis by Canopy Growth Corporation has passed a critical vote, bringing the deal one step closer to completion. Shareholders of MTL have given their overwhelming approval, setting the stage for a final court hearing scheduled for next week.

At a special meeting held on Tuesday, the transaction received near-unanimous support from MTL?s voting shareholders. 99.97% of the votes cast were in favor of the deal, with approximately 89% of all eligible shareholders participating.

The separate vote required from minority shareholders also delivered a decisive result. Excluding votes that must be disregarded under Multilateral Instrument 61-101, 99.80% of the minority shares were cast in support. This significantly surpasses the two-thirds majority threshold needed for approval.

Market and Strategic Rationale

In a press release, Canopy Growth CEO Luc Mongeau described the shareholder vote as a "significant milestone" toward creating what he called a "strategically compelling" combination. The acquisition is intended to bolster Canopy's position within the Canadian medical cannabis market. MTL contributes cultivation capacity that the company states is complementary to Canopy's existing scale and distribution infrastructure.

The market responded positively to this progress. During trading yesterday, Canopy Growth's share price advanced by approximately 8%, according to market data.

Financial Context and Timeline

This shareholder decision follows Canopy's recent release of its third-quarter results for fiscal 2026. The company reported consolidated net revenue of CAD 74.5 million, consistent with the prior-year period. Its cannabis net revenue saw a 4% increase to CAD 52 million.

Furthermore, Canopy announced a 49% reduction in its net loss compared to the same quarter last year. The adjusted EBITDA loss improved to approximately CAD 3 million. The company's cash position at the quarter's end stood at CAD 371 million. In January, Canopy also completed a strategic recapitalization to strengthen its balance sheet ahead of the acquisition.

Final Steps Toward Closing

The acquisition, first announced in December 2025, remains on schedule. The next formal step involves a court hearing. MTL intends to apply for a final order from the Supreme Court of British Columbia on Monday.

Subject to receiving this court approval and the satisfaction of other customary closing conditions, the companies anticipate the transaction will be finalized before the end of March.