Sources tell BNN Bloomberg the plans come as the provincial warehouse runs out of space for the incoming wave of pot products

The Ontario government is mulling another way to distribute cannabis throughout the province and may begin a consultation process soon, according to sources familiar with the situation.

BNN Bloomberg reports a major factor in the plans that could be announced later this week is a lack of space within the province’s warehouse in Oakville, Ont.

“The province is thinking: ‘Why do we need to be in the warehouse business?’” a source said to BNN Bloomberg.

Another source added, “one less shipping box that the product needs to go into” means prices for pot products could drop.

The new move may resemble Saskatchewan’s model, which allows licensed cannabis producers to move product directly to retailers.

This comes after the Ontario Cannabis Retail Corp., a Crown corporation in charge of the Ontario Cannabis Store and wholesale distribution of recreational marijuana, lost $42 million in its most recent fiscal year ended Mar. 31.

The consultation also comes as the Doug Ford government plans to add more legal pot shops as edibles roll out this year.

When asked for comment, OCS spokesman Daffyd Roderick told The Canadian Press its wholesale and e-commerce distribution will keep running and the current facilities are prepared for the new wave of cannabis products.

• Email: bhristova@postmedia.com | Twitter: bobbyhristova

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