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 net savings as part of global cost-efficiency and restructuring measures to achieve profitability and grow revenues
High Park Farms and High Park London remain core to Company’s growth strategy in the adult-use market in Canada
NANAIMO, B.C. – Tilray, 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.
In 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.
“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.”
In April 2018, the Company began operating High Park Farms Ltd. (“High Park Farms”), a cultivation and processing facility located in Enniskillen, Ontario. The facility holds Health Canada cultivation, processing and sales licenses. In April 2018, High Park also began building out High Park Holdings Ltd. (“High Park London”), located in London, Ontario, which is a Health Canada licensed processing, manufacturing and R&D space that produces the bulk of High Park’s “Cannabis 2.0” adult-use products including vapes, edibles and beverages. The Company will continue to utilize its existing facilities in Ontario to serve the adult-use market in Canada and leverage the large footprint to collaborate with Tilray Nanaimo and Tilray Portugal to serve the international medical market as needed.
High Park and its affiliates are currently serving Canadian consumers with a broad portfolio of adult-use brands and products.