PICKERING, ON – September 19, 2025 – MTL Cannabis Corp. (CSE: MTLC) announced today the successful closing of its brokered Listed Issuer Financing Exemption (LIFE) offering, raising approximately $2 million in gross proceeds. The financing was led by Centurion One Capital Corp., a prominent investment banking firm specializing in growth companies. This strategic capital infusion is earmarked for critical capital expenditures and robust brand-awareness initiatives, including targeted marketing activities.
The offering saw the sale of 3,147,999 units at a price of $0.65 per unit, generating aggregate gross proceeds of $2,046,199.35. Each unit comprises one common share of MTL Cannabis and one-half of a common share purchase warrant. These warrants provide the holder the right to acquire an additional common share at an exercise price of $0.98 for a period of three years from the closing date. In connection with the offering, the company also paid a cash commission and issued broker warrants, alongside a corporate finance fee paid through the issuance of additional units. Significantly, securities issued under the LIFE exemption are not subject to statutory hold periods, allowing for greater liquidity for investors.
Understanding the LIFE Offering
The Listed Issuer Financing Exemption (LIFE) is a key tool designed to help publicly traded companies on recognized Canadian stock exchanges raise capital more efficiently. Introduced in November 2022, LIFE offerings allow eligible issuers to distribute securities directly to investors without the costly and time-consuming process of a traditional prospectus. This exemption is particularly beneficial for smaller issuers, enabling them to access public markets with greater speed and lower administrative burdens. Securities issued through LIFE are generally freely tradable, a feature that enhances their appeal to a broader investor base. Recent enhancements to the LIFE exemption have increased the potential capital raising limits for eligible issuers, reflecting a supportive regulatory environment for listed companies seeking to fund expansion.
MTL Cannabis Corp.: Cultivating Craft Quality
MTL Cannabis Corp. has established itself as a prominent player in the Canadian cannabis market, recognized for its commitment to “flower-first” production and its proprietary hydroponic growing methodologies combined with handcrafted techniques. The company focuses on producing craft-quality cannabis products across several popular brands, including “MTL Cannabis,” “Low Key by MTL,” and “R’belle,” distributed through various arrangements across Canada. Beyond the domestic market, MTL Cannabis has also cultivated export channels for bulk and unbranded GACP quality cannabis, demonstrating a global outlook.
The company operates through several subsidiaries, including Montréal Medical Cannabis Inc., Abba Medix Corp., IsoCanMed Inc., and Canada House Clinics Inc. This integrated structure supports its ambition to become a leading distributor of medical cannabis in Canada and a premier provider of cannabinoid therapy services through its clinic network. Recent financial reports indicate significant revenue growth, with full-year 2025 revenues reaching $105.2 million and positive EBITDA, underscoring the company’s operational momentum. However, financial metrics also highlight the need for strategic financing, with a notable net debt position and an Altman Z-Score indicating an increased risk of financial distress, making this capital raise particularly crucial.
Strategic Allocation and Market Outlook
The $2 million raised will be strategically deployed to bolster MTL Cannabis’s operational capabilities and market presence. Funds allocated to capital expenditures could support the company’s ongoing infrastructure improvements, such as the recent installation of LED lighting across its cultivation rooms aimed at reducing utility costs and increasing yields, or the expansion and retrofit of its 815 Tecumseh facility to boost cultivation capacity. The emphasis on brand-awareness initiatives and marketing activities is vital in the increasingly competitive Canadian cannabis landscape, where trends indicate a consumer shift towards premium products and a strong preference for legal market sources.
Centurion One Capital, acting as the lead agent, plays a crucial role in connecting growth companies with necessary capital. Its involvement, along with the participation of certain company insiders, signals confidence in MTL Cannabis’s business strategy and future prospects. This financing is a key step in MTL Cannabis’s journey to strengthen its foundation and capitalize on emerging opportunities within the evolving cannabis industry, utilizing efficient financial tools to drive sustained growth and market leadership.
