It would appear to be too little, too late.

Sales of recreational cannabis in New Brunswick are surging as the provincial government pushes forward with its plans to privatize the rights to operate recreational cannabis retail, wholesale/distribution and e-commerce.

Recently released data shows that adult-use sales from Cannabis NB passed the $26 million mark from Apr. 1 to Dec. 1, according to Marijuana Business Daily.

During that period, only $398,000, or 1.5 per cent of sales, flowed through the province’s online sales portal as customers clearly preferred to get their hands on with the product at one of Cannabis NB’s 20 retail stores.

There were 5,074 online purchases during the period compared to 75,566 transactions at one of the province’s Moncton stores alone.

New Brunswick is gearing up to hand off cannabis sales to the private sector with interested parties having until Jan. 10 to apply for operational rights.

“This is not a sale of the existing business, Cannabis NB, but rather the sale of the rights to operate recreational cannabis retail, wholesale/distribution and e-commerce in the Province of New Brunswick on an exclusive basis over a period of 10 years with two five-year renewal periods,” notes the province’s request for proposal.

New Brunswick, which currently has 215 full- and part-time employees working at Cannabis NB, expects an agreement on a new retail system to be in place by early July.

Turning to the private sector was the best option after bleeding money since legalization took effect.

Finance Minister Ernie Steeves said that after careful consideration, the province decided that turning to the private sector was its best option after bleeding money since legalization took effect. The province intends to choose carefully, Steeves said. “We have to have a compelling proposal for us to do business in the private sector.”

When asked why Cannabis NB was unable to reach profitability, Steeves pointed a finger squarely at the business model. “I think it was a bad business model,” he said, but directed reporters to talk to “the previous government” about the details. Cannabis NB lost more than $11 million in its first six months of operation.

Michael Armstrong, an associate professor at Brock University’s Goodman School of Business in Ontario, said that Cannabis NB could turn a profit with fewer outlets and more competitive prices.