Parents in Nanaimo say they're breathing easy again now that a lengthy battle between a marijuana dispensary and a children's martial arts studio appears to have come to an end.

For five years, Skillz Canada has offered various martial arts programs for children as young as three and as old as teens.

But six months ago the studio began operating under a thick smell of pot after Canna Corner, a dispensary, opened up shop right next door.

"It was awful. They tried to vent it, but it wasn't enough. It was still really bad," said parent Penny Houghting.

Studio owner Rebecca Stephens says she isn't necessarily against dispensaries – there are three other storefronts nearby but all are operating a safe distance away from the gym – but when Canna Corner opened up, her businesses started to dwindle.

"We had families just leave. Lots. Dozens and dozens of kids, which ends up to be thousands and thousands of dollars," she said.

Stephens estimated that her business lost up to $20,000 since the neighbours moved in due to the smell and the confused clientele.

"When we have people coming in here looking for week because they think we're the dispensary, my door is too close. That's crazy," she said.

The City of Nanaimo says it has received complaints about the pot shop but so far it hasn't taken action due to looming legalization in the country.

"Right now we're in the waiting phase to see what the federal government and the provincial regulations are going to be," said acting Nanaimo Mayor Sheryl Armstrong. "So the city is taking a wait-and-see approach to see what's going to happen…If there are concerns about where dispensaries are or there is illegal activity, we request the citizens report it to the RCMP."

But public pressure looks like it could be enough to force change.

Within minutes of CTV News speaking to Stephens, a man representing Canna Corner said the business won't be sticking around.

A man who would only identify himself as a co-owner of the dispensary said the shop is already closed and will be relocating soon – a move the martial arts studio sees as a major victory.

"I think it's going to be wonderful. I feel like the parents will be celebrating today when we let them know that the place next door is moving," said Stephens.

The studio owner said it's a lesson to be learned for other dispensaries attempting to open up next to businesses that cater to children.

 With a report from CTV Vancouver Island's Jessica Lepp