In its quest for profitability by 2027, Canopy Growth Corp. is now Canada’s largest medical cannabis company by revenue after the acquisition of profitable former competitor MTL Cannabis Corp.
The deal, finalized Monday, is expected to boost Canopy’s export efforts and generate $10 million in cost savings and revenue within 18 months, according to a news release.
“The acquisition of MTL is a defining step forward in strengthening Canopy Growth’s core Canadian business and advancing our path toward sustainable profitability,” CEO Luc Mongeau said in a statement.
“Today, we are better positioned to deliver higher-quality products, operate more efficiently and scale strategically to meet growing demand in international markets.”
Markets reacted positively, with shares of Nasdaq-listed Canopy – trading under the symbol CGC – climbing from $1.03 at the start of trading Monday to $1.07 on Tuesday afternoon.
Integrating MTL’s leadership team
MTL Cannabis operates a 76,000-square-foot indoor grow facility in Pointe-Claire, Quebec, and manages the Abba Medix online medical cannabis marketplace.
MTL’s leadership team is being integrated into Canopy’s operations, with former MTL CEO Mick Perron stepping in as Canopy’s chief operating officer, the companies said.
MTL co-founders Richard and Michel Clement will serve as strategic advisors focusing on integration and cultivation.
What does Canopy Growth Corp. own?
In its most recent earnings statements, Canopy reported a $100 million (Canadian) loss over the nine-month period ending Dec. 31, 2025.
Other highlights from Canopy Growth’s third-quarter fiscal 2026 earnings report:
- 49% year-over-year reduction in net loss in the third quarter of fiscal 2026, supported by strong sales and cost savings.
- Net revenue remained steady at $75 million, flat compared to the three months ended Dec. 31, 2024.
- Since March 1, 2025, the company has captured $29 million in annualized savings and continues to look for efficiencies.
Canopy’s U.S. strategy continues to hinge on its interest in holding company Canopy USA.
Canopy USA owns Colorado-headquartered edibles company Wana Brands and New York-based multistate operator Acreage Holdings outright and also has a 77% stake in California-based vaporizer brand Jetty Extracts.
Canopy also has a significant stake in MSO TerrAscend Corp.
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