Business
Tilray® Announces Optimization Plan for Adult-Use Facilities in Canada
Company to close High Park Gardens, licensed cannabis greenhouse located in Leamington, Ontario Facility closure expected to yield $7.5 million in annualized
About this update from Tilray Brands, Inc.
[{"type":"text","content":"\nCompany to close High Park Gardens, licensed cannabis greenhouse located in Leamington, Ontario\n\n\nFacility closure expected to yield $7.5 million in annualized net savings as part of global cost-efficiency and restructuring measures to achieve profitability and grow revenues\n\n\nHigh Park Farms and High Park London remain core to Company’s growth strategy in the adult-use market in Canada \n\n NANAIMO, British Columbia--(BUSINESS WIRE)--\nTilray, Inc. (“Tilray” or “the Company”) (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced its wholly-owned subsidiary High Park Gardens (“Natura Naturals Inc.”) will close its doors over the course of the next six weeks. As a result of the closure, the Company expects to realize annualized net savings of approximately $7.5 million (current production costs net of future 3rd party purchases and ongoing depreciation) and avoid significant ongoing capital expenditures.\n\n\nIn 2019, Tilray acquired Natura Naturals Inc., which has since operated as High Park Gardens. The High Park Gardens facility contains 406,000 square feet of Health Canada licensed space for cannabis cultivation and manufacturing. High Park Gardens has worked collaboratively with Tilray’s existing operational sites to primarily serve the adult-use market in Canada.\n\n\n“We are continuously evaluating the evolving needs of our business, against a challenging industry backdrop, to ensure we’re in the best position to produce world-class products and deliver positive results for our stakeholders,” says Brendan Kennedy, Tilray CEO. “The decision to close a facility is never easy but we are confident that this will immediately put Tilray in a better position to achieve our goals of driving revenues across our core businesses and working towards positive adjusted EBITDA by the end of 2020. We are very confident our existing operations team will continue to serve our valued patients and customers with no interruption. On behalf of myself, the rest of our executive team and our colleagues across the organization, I’d like to extend my sincere gratitude to the team at High Park Gardens for their contributions to Tilray and High Park.”\n\n\nIn April 2018, the Company began operating High Park Farms Ltd. (“High Park Farms”), a cultivation and processing facility located...