A little more than a year after the legalization of cannabis, New Brunswick says it is prepared to privatize the Crown corporation created to handle recreational cannabis.

The province’s finance and Treasury Board minister made the announcement on Thursday, saying that losses incurred by the provincial cannabis corporation persuaded the government it was time to turn to the private sector.

“This was the best way to stop losing money at this point,” Steeves said. “We are responsible for the taxpayers’ money, and we have to be prudent with it.”

He also said Health Canada regulations make it hard to be successful.

“I’m convinced Health Canada did not want it to succeed. Health Canada has come out with rules like you can’t smile in pictures on our website, because that might encourage people to take part in this activity,” Steeves said.

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Steeves said the province is issuing a request for proposals (RFP) in order to find a single private operator to take over Cannabis NB operations.

The government’s RFP will look to identify a proponent who has “demonstrated experience in the sale of recreational cannabis” and a “viable plan to combat the illegal market.”

The RFP will remain open until Jan. 10, 2020.

The New Brunswick government said there is not a 100 per cent guarantee that the province will have a bidder that satisfies its needs, but provincial officials say they’re confident after having received a significant amount of interest from the private sector.

2:04 N.B. government considering privatizing its crown corporation Cannabis NB N.B. government considering privatizing its crown corporation Cannabis NB

Steeves said the successful operator will not be required to take on the approximately 200 Cannabis NB employees. Instead, there’s an “expression” to have them transferred to the new private model.

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The New Brunswick government said it does not plan to issue any further comments until after the close of the RFP on Jan. 10.

The Higgs government is getting out of the recreational Cannabis business and turning it over to the private sector @Global_NB #cannabisnb — Andrew Cromwell (@Andrew_GlobalSJ) November 14, 2019

The decision comes only a few weeks after the government-owned cannabis monopoly disclosed it was still losing money and had no prospect of making money in the current fiscal year.

Cannabis NB CEO Patrick Parent told provincial lawmakers at the beginning of November that the Crown corporation might start turning a profit in the 2020-21 fiscal year.

Cannabis NB — which the cash-strapped province once hoped would be a revenue source — is bleeding money.

The Crown corporation lost almost $12 million in its first six months and continues to bleed red ink, although sales are on the rise.

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In the second quarter of this fiscal year Cannabis NB reported a $1.5-million loss.

1:28 Premier less than convinced on the profitability of Cannabis NB Premier less than convinced on the profitability of Cannabis NB

The inability of Cannabis NB to get in the black has not been well received by Premier Blaine Higgs.

Before Parent’s appearance, he grimly told reporters:“We’re not going to keep losing money on this.”

Other provinces that have operated under a government-run model are doing better than Cannabis NB, with observers pointing to the extensive network of 20 retail stores in communities that may not be able to support those businesses.

Cannabis NB currently operates out of 20 standalone retail spaces scattered across 15 communities in the province.

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The province said that retail outlets will not be part of the RFP but could be considered part of the deal.

A Global News analysis of retail prices for four standard cannabis products in six provinces found earlier this month that New Brunswick usually had the highest prices.

READ MORE: Cannabis NB laying off staff, says it has better understanding of ‘operational needs’ In Fredericton, Peoples’ Alliance Leader Kris Austin applauded the call for proposals but said there should be an open market rather than just one operator. He said that would help address the number of illegal dispensaries in the province.“We pushed for an open market rather than one source, because the ones that are operating illegally can do what they need to operate legally,” he said.Earlier this month, Cannabis NB CEO Patrick Parent said more than 50 illegal cannabis dispensaries in New Brunswick were greatly impacting sales at the legal stores.On Thursday, Parent issued a statement saying the decision on the future sale and distribution of cannabis rests with the provincial government, and Cannabis NB will focus on improving prices and lowering costs until that decision is made.“Until such time as the retail model changes, Cannabis NB will manage all aspects of its operations in order to provide the best value to its customers and its shareholders,” Parent wrote.The New Brunswick Medical Society expressed concern Thursday about the privatization and asked to be included in discussions between the government and the retailer chosen.“While we understand the financial challenges government is facing, it is important that government policy put public safety at the forefront of all decisions regarding the sale of cannabis,” Dr. Chris Goodyear, the medical society’s president said in a statement. “While it may be legal, that does not mean cannabis is safe.” In Fredericton, Peoples’ Alliance Leader Kris Austin applauded the call for proposals but said there should be an open market rather than just one operator. He said that would help address the number of illegal dispensaries in the province.“We pushed for an open market rather than one source, because the ones that are operating illegally can do what they need to operate legally,” he said.Earlier this month, Cannabis NB CEO Patrick Parent said more than 50 illegal cannabis dispensaries in New Brunswick were greatly impacting sales at the legal stores.On Thursday, Parent issued a statement saying the decision on the future sale and distribution of cannabis rests with the provincial government, and Cannabis NB will focus on improving prices and lowering costs until that decision is made.“Until such time as the retail model changes, Cannabis NB will manage all aspects of its operations in order to provide the best value to its customers and its shareholders,” Parent wrote.The New Brunswick Medical Society expressed concern Thursday about the privatization and asked to be included in discussions between the government and the retailer chosen.“While we understand the financial challenges government is facing, it is important that government policy put public safety at the forefront of all decisions regarding the sale of cannabis,” Dr. Chris Goodyear, the medical society’s president said in a statement. “While it may be legal, that does not mean cannabis is safe.”

— With files from Andrew Cromwell, Patrick Cain and The Canadian Press