Behemoth Canadian cannabis producer Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY) is shutting down its flagship facility in Nanaimo, B.C., one of the first licensed commercial cannabis grows in the country.
After NanaimoNewsNow broke the news Wednesday, Tilray confirmed with Mugglehead that it’s shutting down the facility to “optimize operational efficiencies” with the recent business combination with former rival Aphria.
Tilray wouldn’t confirm the number of jobs that are expected to be lost, but reports estimate that number to be between 160–300.
“This closure will roll out in phases and is anticipated to be completed by Spring 2022,” a spokesperson said in an email. “We will work with employees interested in transitioning and seeking opportunities at our nearby facility at Broken Coast on Vancouver Island, B.C.”
The company says it will concentrate its local B.C. cultivation at the Broken Coast facility, and its international production in Portugal and Germany.
Tilray and Aphria completed a blockbuster merger deal in May. The combined company now operates the following facilities:
- Broken Coast in North Cowichan, B.C.,
- Aphria One in Leamington, Ont.,
- Aphria Diamond in Leamington Ont.,
- High Park in London, Ont.,
- Tilray in Cantanhede, Portugal, and
- Aphria RX GmBH in Neumunster, Germany.
By focusing production at its remaining sites across Canada, Tilray says it will be able to save costs and deliver high-quality products to its patients and consumers, while driving growth and shareholder value.
Tilray reported annual net income of $33.6 million and losses of $336 million in its latest earnings report in July. Company stock peaked during a retail investor frenzy in February at almost US$64 per share, but now trades at US$11.94 on the Nasdaq.
Much of the interest in Tilray’s stock hinges on federal legalization of pot in the U.S.