British Columbia

Cannabis production company Tilray closing its offices, facility in Nanaimo, B.C.

The company says it is closing the facilities to save costs following a merger a few months ago with Aphria Inc. which is based in Ontario.

Closure comes just months after merging with Ontario-based Aphria Inc.

Tilray Founder and Director Brendan Kennedy is photographed with some of the Tilray product line such as capsules, oils, and dried marijuana at the company's former head office in Nanaimo, B.C., on Thursday, Nov. 29, 2017. (Chad Hipolito/Canadian Press)

Cannabis company Tilray Inc., which merged with Aphria Inc. earlier this year, says it will close a Nanaimo, B.C., office and facility.

The company says in an email that it is closing the facilities to optimize operational efficiencies and save costs following the merger.

The company did not share how many workers will be impacted by the closures, but says it will work with those interested in opportunities at its Broken Coast facility on Vancouver Island.

Tilray says the closure will roll out in phases and is expected to be completed by next spring.

Tilray's website shows that the Nanaimo facility was home to a grow room, vault, trimming room, extracts lab and packaging operations.

The company says B.C. cultivation will now take place at the Broken Coast site and Tilray will continue to make use of facilities in Leamington and London, Ont., and in Portugal and Germany.

In a statement issued last week, Nanaimo Mayor Leonard Krog said he was disappointed with the decision.

"While it is my understanding that Tilray plans to close its facility in phases, by the spring of 2022, we are mindful that employees and others will be seriously impacted by the closures," said Krog.

With files from Bridgette Watson