Canopy Growth Acquisition of MTL Cannabis Receives Overwhelming Shareholder Approval

Canopy Growth CA1380351009

The proposed acquisition of MTL Cannabis Corp. by Canopy Growth Corporation has cleared a pivotal hurdle, receiving near-unanimous support from MTL's shareholders. The vote brings the transaction significantly closer to completion, with a final court hearing now standing as the last major procedural step.

During a special meeting held on Tuesday, MTL Cannabis shareholders voted decisively in favor of the arrangement with Canopy Growth. According to a company statement released yesterday, the approval rate reached a remarkable 99.97% of votes cast.

The level of support is further underscored by the high voter turnout, with approximately 89% of eligible shareholders participating. The approval also comfortably exceeded the minority approval threshold required for such transactions. Excluding votes that must be excluded under securities regulations, the approval rate stood at 99.80%.

Transaction Valuation and Timeline

Canopy Growth initially announced the acquisition plan in December. The deal values MTL Cannabis at an enterprise value of roughly 179 million Canadian dollars. On a fully diluted equity basis, the valuation is approximately 125 million CAD.

The transaction is governed by an arrangement agreement dated December 14, 2025, which was subsequently amended on January 6. As part of the deal, Canopy Growth will acquire all of the issued and outstanding common shares of MTL Cannabis.

Final Step: Court Sanction

With shareholder consent secured, the process now moves to its concluding formal phase. MTL Cannabis is scheduled to seek a final order from the Supreme Court of British Columbia to approve the arrangement. A hearing for this purpose is set for Monday.

Provided the court and all other necessary regulatory approvals are obtained in a timely manner and the remaining conditions are satisfied, both companies anticipate closing the transaction before the end of March.