Canopy Growth Faces Pivotal February with Earnings and Acquisition Vote

Canopy Growth CA1380351009

The coming weeks represent a critical period for Canopy Growth Corporation, with two major corporate events scheduled for February 2026 that will significantly influence its trajectory.

A defining moment arrives on February 17, when shareholders of MTL Cannabis will cast their votes on the proposed acquisition by Canopy Growth. Valued at approximately 179 million CAD, the deal offers MTL shareholders 0.32 Canopy Growth shares plus 0.144 CAD in cash for each MTL share held. This offer represents an 82 percent premium over MTL's closing share price on December 12, 2025.

Key financial details of MTL Cannabis:
* Equity Value: Roughly 125 million CAD
* 12-Month Revenue (to Sept. 2025): 84 million CAD
* Gross Margin: 51 percent
* Operating Cash Flow: 11 million CAD

The transaction requires approval from at least two-thirds of the MTL shareholders present at the meeting. Support has already been secured from holders of about 75 percent of the outstanding shares through signed voting agreements. Final clearance is also contingent on approval from the Supreme Court of British Columbia and the Canadian competition authority.

Management anticipates the acquisition will establish Canopy Growth as the leading medical cannabis provider in Canada, projecting annual cost synergies of approximately 10 million CAD within 18 months of closing. If all proceeds according to plan, the deal could be finalized before the end of February 2026.

Third-Quarter Financial Results on Deck

Prior to the acquisition vote, the company will report its financial performance for the third quarter of fiscal year 2026, covering the period ending December 2025. The earnings release is scheduled for February 6, before market open, followed by a conference call at 10:00 a.m. Eastern Time featuring CEO Luc Mongeau and CFO Tom Stewart.

Recent quarterly figures demonstrated positive momentum in the domestic market. For Q2 FY2026, revenue in the Canadian recreational segment advanced by 30 percent year-over-year, while medical cannabis sales grew by 17 percent. The company reported a cash position of 298 million CAD as of September 30, 2025.

Recapitalization Provides Financial Foundation

Canopy Growth entered the new year with a strengthened balance sheet following a successful recapitalization effort in early January. The company refinanced a credit facility maturing in 2027 with a new 162 million USD term loan, extending all liability maturities to at least January 2031. Furthermore, convertible notes worth 96.4 million CAD were exchanged for new notes valued at 55 million CAD, which mature in July 2031.

Upon completing this financial restructuring, Canopy Growth held liquid resources of about 425 million CAD, providing a solid foundation for its strategic initiatives, including the pending MTL Cannabis acquisition.