Canopy Growth (CGC) will acquire all of the issued and outstanding common shares of MTL Cannabis (MTLNF) and will settle all debt and debt-like instruments owed by MTL, in a transaction valued at approximately C$125 million on a fully-diluted equity basis.
Under the terms of the arrangement agreement, each shareholder of MTL will receive fixed consideration for each MTL share equal to (i) 0.32 of a common share of Canopy Growth and (ii) C$0.144 in cash.
Canopy Growth (CGC) said the “highly accretive business combination” is expected to generate significant run-rate synergies of approximately C$10 million within 18 months.
Canopy Growth (CGC) shares are up nearly 3% in premarket trading.
