In an another effort to increase supply of legal cannabis for medical patients and adult-use recreational consumers, Tilray Inc. (NASDAQ: TLRY) today announced a $32.6 million investment into expanding manufacturing capabilities.
That investment will be spread across three subsidiaries, with each company utilizing the funds to add several thousand sq. ft. of space to existing cultivation and production sites.
First up, the company’s research and development arm Tilray Canada Ltd. is set to expand a pharmaceutical grade cannabis greenhouse located in Nanaimo, British Columbia. That expansion will bump up the facility by an extra 20,000 sq. ft. to increase output for medical patients.
Next, the company’s wholly-owned subsidiary High Park Holdings is doubling the size of initial plans for a licensed facility in London, Ontario. Originally announced last year just after recreational marijuana usage was legalized in Canada with the Cannabis Act, High Park’s manufacturing site is set to focus on growing cannabis for adult use consumers.
With the influx of cash from Tilray’s investment, the site is expanding to 112,000 sq. ft. of usable space, adding more than 50 extra jobs and significantly expanding packaging capabilities beyond what was initially announced in 2018.
Finally, Tilray’s new acquisition High Park Gardens (formerly known as Natura Naturals Inc.) is gearing up to add an additional 100,000+ sq. ft. of production space to the company’s existing 662,000 sq. ft. cultivation site. That location is currently only partially operational, with less than a third currently licensed and ready to produce product. Tilray issued this statement about the High Park Gardens construction plans:
The end result of this investment into the three sites will see Tilray’s production capacity worldwide increasing to 1.3 million sq. ft. of total space across all facilities and subsidiaries.
Aside from cannabis for medical and recreational users, Tilray also recently made a move towards expanding into hemp with the acquisition of food company Manitoba Harvest.