Despite improved sales figures, Cannabis NB continues to bleed money

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In news that will be a surprise to few, Cannabis NB has continued to bleed money – even with a bump in its second quarter sales.

Unlike that high school buddy who sold dime bags at lunch and always had cash on hand for the dopest sneakers, Cannabis NB has been steadily losing money since it started selling weed.

Over the past year, the embattled Crown corporation has blamed previous losses on supply shortages and on the illicit market, contemplated privatization, weathered a public relations snafu regarding paying double stipends to board members, staff layoffs and a subsequent scathing audit, and pinned its hope on edibles to pull it out of the financial red.

“The loss for this quarter is $1.5 million,” Cannabis NB spokesperson Marie-Andrée Bolduc told CBC News. “It can take time to become profitable. We are actively working toward profitability and Phase 2 products will help accelerate that process.”

Although the company’s sales showed improvement over the summer months, some experts suspect the spike was seasonal and are skeptical that the trend will continue into the cooler months when consumers are less inclined to leave their homes.

The company reported yesterday that its second quarter sales added up to $10.7 million – a more than 17 percent increase compared to Q1. The most recent quarter ended on Sept. 29.

Conversely, parent company NB Liquor, which uses the same reporting periods, has posted solid sales this year – particularly in the summer months, for a 14.6 percent increase from Q1 that added up to an intake of $126 million.

Cannabis NB has struggled financially since opening its doors in October 2018, having lost more than $15 million since its inception, despite lowering prices and improving its supply.

Cannabis NB is the only licensed cannabis retailer in the province of New Brunswick.

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