Citing significant financial losses and overly restrictive federal regulations, the New Brunswick government is looking for a private operator to take over its distribution and sales of recreational cannabis.
Finance Minister Ernie Steeves made the announcement Thursday in Fredericton, saying that losses incurred by the provincial cannabis corporation persuaded the government it was time to turn to the private sector.
"This was the best way to stop losing money at this point," Steeves said. "We are responsible for the taxpayers' money, and we have to be prudent with it."
Cannabis NB, a provincial Crown corporation, lost almost $12 million in its first six months, and although sales are on the rise, it continues to bleed red ink. It was announced last month that second quarter losses for the current year were $1.5 million.
Steeves said the previous Liberal government went with a bad business model that stuck the province with expensive leases on 20 stores across the province. He also said Health Canada regulations make it hard to be successful.
Read more at bnnbloomberg.ca