OnX gets contract to manage Alberta’s online site for cannabis sales

OnX Enterprise Solutions, a U.S. based firm, has been offered a three-year contract worth USD 4.59 million for developing & managing Alberta website as far as online cannabis sales are concerned. For the record, the Alberta Gaming & Liquor Commission (AGLC) has stated that in February this year, nearly six firms had submitted request proposals on the government web portal for earning the contract through the open process.

Out of the six candidates, the Alberta Gaming & Liquor Commission (AGLC) has apparently chosen OnX Enterprise Solutions, which is associated with various firms such as the Canadian Tire Corporation and American Express. Incidentally, the contract has been awarded to OnX due to its expertise in the online sales activities.

Some of the key officials of AGLC are likely to monitor the cannabis distribution, including both the online sales as well as retail store sales. As per the provincial government budget, it is forecast that the cannabis business is likely to suffer a net loss of USD 90 million during the first two years. In fact, the set-up as well as acquisition costs are likely to surpass revenue. The province’s government budget however, also states that cannabis sales will accrue nearly USD 37 million during 2020-21 in terms of revenue.

AGLC’s move is aimed at educating customers by providing them with online product information for the responsible application of cannabis. It is still not certain which particular type of cannabis products will be sold online though. The Government of Alberta has yet not offered any contracts for the marijuana producers either.

The AGLC believes that the legalization of cannabis sales in Canada is likely to boost online product sales as well. According to the Federal Government of Canada, medical marijuana is likely to be legalized this summer, though the date of legalization has not yet been finalized.