Connect with us

Hi, what are you looking for?

Thursday, Oct 21, 2021
Mugglehead Magazine
Cannabis & psychedelics industry news based in Vancouver, B.C.
  • Loading stock data...

Business

Tilray confirms shutdown of flagship Nanaimo facility

The company says it will work with employees interested in transitioning to its Broken Coast facility in North Cowichan

Tilray confirms shutdown of flagship Nanaimo facility
Image via Tilray

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.”

Read more: Tilray reduces required shareholder vote count to 1/3 for Aphria merger

Read more: Tilray moves to take large stake in US retailer MedMen

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.

Read more: Reddit traders send pot stocks to the moon — and back

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Nick Laba on Twitter

nick@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Health and Safety

Science doesn't know yet, but one psychedelic researcher is chasing clues to see if it can

Canada

As more medium-to-small producers came into play this year, great weed started hitting legal shelves at fairer prices

Analysis

While legal weed businesses decry enforcement of their accounts, the platform says it's keeping its all-ages community safe

Culture

Punishments for possession include caning and the death penalty. Despite a global trend of reform, The Fine City remains staunch in its anti-drug stance