Marijuana producer Tilray Inc. is shutting down a “‘flagship” facility in Nanaimo, British Columbia, as part of the company’s plan to save money following its merger with Aphria, the company confirmed in an email to MJBizDaily.

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“Tilray will be closing its office and facility in Nanaimo, BC. With the recent business combination with Aphria, Tilray is making changes to optimize operational efficiencies,” the company said via email.

In the statement, Tilray said it will concentrate its B.C. cultivation in the Broken Coast facility on Vancouver Island, and its international production and manufacturing in Portugal and Germany.

The closure, first reported by NanaimoNewsNOW, will leave hundreds of people out of work.

The closure will be managed in phases, with completion anticipated for next spring.

“We will work with employees interested in transitioning and seeking opportunities at our nearby facility at Broken Coast on Vancouver Island,” Tilray said.

“By focusing local cultivation and manufacturing at the remaining sites across Canada, Tilray will be able to operate more efficiently, save costs, and deliver the highest-quality products to its patients and consumers all while driving growth and shareholder value,” according to the Tilray statement.

When Tilray merged with Aphria earlier this year, the company said it expected to achieve cost savings of 100 million Canadian dollars ($77 million) annually.

Tilray reported a loss of CA$422 million for its fiscal year ended May 31.

Shares of Tilray trade on the Nasdaq as TLRY.