A licenced cannabis greenhouse in Leamington, employing about 120 people will be shutting down operations over the next six weeks.

Tilray, Inc. the owner of High Park Gardens announced Wednesday it would be closing its Leamington operation. The company says the closure is expected to yield $7.5 million in annualized net savings.

“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,” Brendan Kennedy, Tilray CEO said in a statement.

Tilray acquired Natura Naturals Inc., in 2019 and has since operated as High Park Gardens.The facility has 406,000 sq ft. of Health Canada licensed space for cannabis cultivation and manufacturing, the company says.

“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, “Kennedy said.

A spokesperson from Tilray told BNN Bloomberg the Leamington greenhouse employs around 120 people, some will stay through the closure and may move to another facility.