Cannabis NB could be a thing of the past if the New Brunswick government opts to move forward with selling the provincial retailer, negotiations around which have been ongoing since last fall.

Global News reports the N.B. government has been in talks with a potential suitor since October. At that time, “negotiations started with the top-ranked proponent,” and the agency is in the final stages of negotiations at this time, said Cheryl Hansen, deputy minister of the Department of Finance and Treasury Board.

Cannabis NB lost $12.5 million during its first year of operation. Agency officials cited numerous factors for failing to emerge from the red as was hoped, including a lack of progress on fighting back against the highly profitable illicit market

The situation even elicited a recommendation from Michael Armstrong, an associate professor at Brock University, that Cannabis NB needed to get its prices down and quality up to attract people away from the illegal market.

Financial woes continued and by the late fall of 2019, Cannabis NB put out feelers for weed selling rights in the province. “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,” noted the province’s request for proposal.

At the time, eight companies had submitted their applications to vie for the opportunity, namely Canopy Growth Corporation, Fire & Flower Inc., Green Stop Cannabis Ltd., Kiaro Brands Inc., Loblaw Companies Limited, New Brunswick Association of Cannabis Distributors, RSL NB and YSS Corp.

The N.B. government has not confirmed which suitor, if any of these, is the one currently in late-stage negotiations.

By the late fall of 2019, Cannabis NB put out feelers for weed selling rights in the province. / PHOTO BY AHPHOTOSWPG / ISTOCK / GETTY IMAGES PLUS

But after what can charitably be called a rocky start, Cannabis NB’s financial results have brightened throughout 2020 and into 2021.

In January of this year, the agency’s unaudited results for the third quarter ending Dec. 27, 2020 showed total sales of $19.3 million, a massive 76 per cent hike over the same quarter of 2019.

Beyond sales, actual profit was also up. “The net profit for the third quarter was $2.8 million, which is a 360 per cent increase year over year. We anticipate ending the fiscal year in a strong position with $10 million in profit,” Cannabis NB’s acting president and CEO Lori Stickles said at the time.

At that point, the agency’s year-to-date net profit for the fiscal year was $7.4 million, the statement adds.

Concentrates sales for the quarter were $3.9 million and edibles sales accounted for $1.3 million, NB Cannabis reported in January. / PHOTO BY DARRYL DYCK/THE CANADIAN PRESS FILES

By product, sales of dried flower rose 34.5 per cent to $3.1 million, accessories sales increased 65.6 per cent to $0.3 million and extracts sales fell 8.9 per cent to $0.1 million. Concentrates sales for the quarter were $3.9 million and edibles sales accounted for $1.3 million, NB Cannabis reported in January.

“The growth has been remarkable, and I feel confident it is sustainable. We are on track for a strong fourth quarter to finish the year,” John Correia, chair of the Cannabis NB Board of Directors, added in the statement.

Citing updated figures, Global News reported this month that total net profit for the fiscal year is $8.3 million and is expected to rise even more.

There is still no official word on if the sale is inevitable. “Because we’re negotiating now certainly does not imply that this is a done deal and that this will be sold,” Hansen notes in the Global News video clip.

The fact that the government is still negotiating suggests to interim N.B. Liberal Party leader Roger Melanson “the government seems to want to be selling Cannabis NB.”