Canopy Growth Corp. and MTL Cannabis Corp. announced that they have entered into a definitive agreement under which Canopy Growth will acquire all of the issued and outstanding common shares of MTL and settle all of the debt and debt instruments owed by MTL in a transaction valued at approximately $125 million on an all-equity basis and approximately $179 million on an enterprise value (TEV) basis.
Under the terms of the agreement, each MTL shareholder will receive a fixed consideration for each MTL share equal to: (i) 0.32 of a Canopy Growth common share (each whole share, a “Canopy Growth Share”) and (ii) $0.144 in cash.
MTL was founded by Quebec entrepreneurs and brothers Richard and Michel Clément, who built the company around a deep commitment to growing high-quality cannabis flowers. The quality of cannabis products produced through MTL’s disciplined, artisan approach to growing has earned national recognition, including being named Canada’s #1 recommended brand by enthusiasts in the Brightfield 2024 study.1. MTL provides proven operational excellence, loyal customer demand and experience in producing cannabis that works for the market. Canopy Growth intends to leverage the expertise of the MTL team as it continues to expand its line of cannabis products.
“MTL offers skilled operators, strong brands and a profitable business that will strengthen our leadership in the Canadian medical market and deepen our presence in key Canadian adult markets, including Quebec,” said Canopy Growth CEO Luc Mangeau. “Their growing experience combined with our national scale allows us to improve product quality, expand supply and accelerate our path to profitable growth. Together, we are building a stronger and more competitive Canadian business for the long term.”
“MTL was built on the idea that high-quality flowers, grown with care and consistency, will always earn the trust of consumers and patients,” said MLT Cannabis Co-Founder and Chief Cultivation Officer Richard Cleman. “Joining Canopy Growth gives us a platform to bring this philosophy to more Canadians. Our respective portfolios are very complementary and we see a great opportunity to expand MTL’s reach through Canopy Growth’s national distribution and retail relationships. We are incredibly proud of what our team has built and look forward to working with Canopy Growth to continue to elevate Canadian cannabis.”
Key transaction points are available for agreement here.
1 Recognized as Canada’s #1 Budtender Recommended Brand in the Brightfield 2024 Study, Brightfield Group, Canadian Budtender Study 2024 (in partnership with O2O). Findings based on a survey of ~670 Canadian youth in several Canadian provinces.
Statistics Canada has released December retail sales for the country, with Cannabis sales are on the rise from November levels, up 5.3% to C$503.7 million, a new monthly record high. This sequential increase was up 1.9% on a daily basis due to more days than in the previous month. November, originally reported at C$477.9 million, was revised slightly higher to C$478.4 million. December sales rose 2.9% from a year earlier, up from 8.3% in May, 7.5% in June and 6.2% in September. This was also below the 20.3% growth rate in August 2023 and better than the previous lowest annual growth since the start of legalization, which started at -0.9% in September 2024 and then -1.6% in October due to the BC strike, and it was down significantly from the 9.1% growth in December 2024. The previous record level in August was only 1.8% above the previous year’s level. Total sales are expected to increase by 4.5% to C$5.39 billion in 2024 and by 4.1% to C$5.62 billion in 2025.
An increase in the number of shops, as well as a fall in the prices of flowers that attract consumers from the illegal market, have boosted sales. In Ontario, the most populous province, sales rose 6.5% from November but fell 4% from a year earlier. Alberta was up 5.7% from November, but down 1% from last year. British Columbia was up 5.2% from November and 22% from a year ago, while Quebec was down 1.6% from November and 10% from a year ago.
January sales data will be released on March 20.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
This data-driven, fact-based search engine will be continually updated based on new financial filings so readers can stay up-to-date. Companies must file with the SEC or SEDAR and be current to be considered for inclusion. When we launched this resource in May 2019, companies with more than $2.5 million in quarterly revenue qualified. As the industry has grown and as more companies have gone public, we have raised the minimum several times, including $5 million in October 2019, $7.5 million in June 2020, up to $10 million in November 2020, $12.5 million in August 2021, $12.5 million in August 2021, and $202 in September 2021. million dollars. hemp industry, we raised the minimum again in May 2024. The senior list has a minimum of US$50 million (C$68.3 million) and the junior list now has a minimum of US$25 million (C$34.2 million).
Note on adjusted operating income
In May 2019, we added an additional measure, Adjusted Operating Income, which we detailed in our newsletter. The calculation takes reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe this adjustment improves comparability between companies under IFRS and GAAP accounting. We note that operating income can often include one-time items such as stock compensation, inventory write-offs or public listing costs, and we encourage readers to understand how these non-cash items may impact quarterly financials. Many companies have moved from IFRS to US GAAP accounting, which has reduced our need to make adjustments. Please note that our rating only includes actual reported income and non pro forma income. We also note that companies with non-hemp operations must provide segment-level financial statements detailing not only revenue but also operating profit in order for their operating profit to be included in the tracking. Currently, Aurora Cannabis (NASDAQ: ACB ) (TSX: ACB ), Jazz Pharma (NASDAQ: JAZZ ) and Tilray (TSX: TLRY ) (NASDAQ: TLRY ) do not provide this information.
Tracker inclusion updates
At the time of our last update on October 21st, 19 companies were eligible for inclusion on the senior lists, including 14 in USD and 5 in Canadian currency, while there were 12 companies on the junior lists. Now, 15 companies denominated in US dollars and 4 denominated in Canadian dollars qualify for the senior lists, for a total of 19 now. The junior list includes 9 companies denominated in US dollars and 2 in Canadian dollars. Tracking public cannabis company revenue and earnings on a combined basis now includes 30 companies. American Junior List lost Scotts Miracle-Gro exits, including Hawthorne Gardening, when it reported its fiscal quarter due to its expected divestment. In Canada, Organigram (NASDAQ: OGI ) (TSX: OGI ) moved from the Senior List to the Junior List.
Companies that have reported since mid-November are included
Many of these companies are in December year-end and year-end reporting for them will begin very soon. There are several companies that have reported since the third quarter reports were released in November.
Senior and Junior – US Dollar Report
Neither company has yet reported Q3, but a flurry of updates begins next week. Tilray brands (NASDAQ: TLRY ) (TSX: TLRY ) reported its fiscal third quarter in early January. The diversified company grew its cannabis business 3% year over year as it grew 5% sequentially.
Several of the Big 5 MSOs have scheduled calls for their Q4 financial reports, although GTI has changed its policy and will not host any for now. Here is the current outlook of all of them.
Curaleaf (OTC: CURLF ) (TSX: CURA ) – revenue is expected to decline 1% year-over-year to $328.3 million, with adjusted EBITDA of $66.9 million, a 12% decline.
Green Thumb Industries (OTC: GTBIF ) (CSE: GTII ) – revenue is expected to increase 1% year over year to $296.1 million and adjusted EBITDA is expected to decline 20% to $78.6 million.
Trulieve (OTC: TCNNF ) (CSE: TRUL ) – Revenue is expected to decline 1% year-over-year to $296.5 million and adjusted EBITDA is expected to decline 8% to $95.9 million.
Verano Holdings (OTC: VRNO ) (NEO: VRNO ) – revenue is expected to decline 6% to $205.9 million and adjusted EBITDA is expected to decline 10% to $56.7 million.
Cresco Labs (OTC: CRLBF ) (CSE: CL ) – Revenue is expected to decline 9% to $160.9 million and adjusted EBITDA is expected to decline 12% to $36.3 million.
Senior and Junior – Canadian Dollar Report
Since the November 3rd quarter reports, High Tide (NASDAQ: HITI ) (TSXV: HITI ), Aurora Cannabis (NASDAQ: ACB ) (TSX: ACB ), Canopy Growth (NASDAQ: CGC ) (TSX: WEED ) and Organigram Global (NASDAQ: OGITS ) have filed to list (NASDAQ: OGITS ). Revenue grew sequentially for each of them except Organigram.
One of Canada’s senior listed members, SNDL, has yet to schedule its quarterly call.
The Public Cannabis Company Earnings Tracker by New Cannabis Ventures is not a recommendation of any company, and you should not use it as investment advice. A tilde next to a date means an approximate date. All calculations are derived from SEC or SEDAR filings. Any questions or licensing inquiries please contact us.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
Statistics Canada has released November retail sales for the country, with Cannabis sales are on the rise up 6.6% from October levels to C$477.9 million. This sequential increase is up 10.2% on a daily basis, driven by fewer days compared to the previous month. October, originally reported at C$451.7 million, was revised slightly lower to C$448.5 million. It was hit by a strike in British Columbia in October. Sales rose 4.6% in November from a year earlier, up from 8.3% in May, up from 7.5% in June and 6.2% in September. This was also lower than the 20.3% growth rate in August 2023 and better than the lowest growth rate in the previous year since the start of legalization, which started at -0.9% in September 2024 and then -1.6% in October due to the BC strike, and it was significantly down from the 9.1% growth in December. August’s record level was only 1.8% higher than last year’s index. Total sales are expected to grow 4.5% to C$5.39 billion in 2024 and 4.2% year-to-date in 2025.
An increase in the number of shops, as well as a fall in the prices of flowers that attract consumers from the illegal market, have boosted sales. In Ontario, the most populous province, sales fell 5.2% from October and 3% from a year ago. Alberta was down 5.5% from October and 2% from a year ago. British Columbia, which was down 55.0% sequentially in October and 54% year-over-year, was up 250% sequentially in October and 9% year-over-year, while Quebec was down 4.1% in October and 31% year-over-year.
December sales data will be released on February 20.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
