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The government reports that it is in the final stages of negotiating with a potential candidate, but adds that a final decision has not yet been made.
Photo by Cannabis NB, Dan Culberson
The situation even sparked a recommendation from Michael Armstrong, an associate professor at Brock University, that Cannabis NB should lower its prices and quality in order to deter people from the illicit market.
The financial troubles continued and by late fall 2019, Cannabis NB was issuing feelers for weed sales rights in the province. “This is not a sale of the existing business, Cannabis NB, but the sale of the rights to operate cannabis retail, wholesale / distribution and e-commerce in the province of New Brunswick on an exclusive basis for a period of 10 years with two renewal periods of five Years, ”says the province’s call for proposals.
At this point, eight companies had submitted their applications to compete for the opportunity, namely Canopy Growth Corporation, Fire & Flower Inc., Green Stop Cannabis Ltd., Kiaro Brands Inc., Loblaw Companies Limited, RSL (New Brunswick Association of Cannabis Distributors) NB and YSS Corp.
The NB government has not confirmed which candidate, if any, is currently in the late stages of negotiation.
Photo by AHPhotoswpg / iStock / Getty Images Plus
But after a charitable start-up, Cannabis NB’s financial results improved over the course of 2020 and through 2021.
As of January of this year, the agency’s unaudited results for the third quarter ended December 27, 2020 showed total revenue of $ 19.3 million, a massive 76 percent increase over the same quarter of 2019.
In addition to sales, actual profit also increased. “Net income for the third quarter was $ 2.8 million, an increase of 360 percent year over year. We expect to end the year in a strong position with $ 10 million in profit, ”said Lori Stickles, Acting President and CEO of Cannabis NB.
At that point, the agency’s year-to-date net income for the fiscal year was $ 7.4 million.
Photo by Darryl Dyck / The Canadian Press Files
By product, sales of dried flowers rose 34.5 percent to $ 3.1 million, sales of accessories rose 65.6 percent to $ 0.3 million, and sales of extracts rose 8.9 percent $ 0.1 million. Concentrate sales were $ 3.9 million and grocery sales were $ 1.3 million for the quarter, NB Cannabis reported in January.
“The growth has been remarkable and I am confident that it will be sustainable. We are on our way to a strong fourth quarter to end the year, ”added John Correia, Chairman of the Board of Directors of Cannabis NB, in the statement.
Citing updated numbers, Global News reported earlier this month that total net income for the fiscal year is $ 8.3 million and is expected to continue to grow.
There’s still no official word as to whether the sale is inevitable. “Because we’re negotiating now, it certainly doesn’t mean that this is a deal and that it will be sold,” Hansen stated in the Global News video clip.
The fact that the government is still negotiating suggests that the chairman of the NB Liberal Party, Roger Melanson, “the government seems to want to sell cannabis NB”.
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