An Ohio-based technology company has been awarded the contract to build and manage the website the Alberta Gaming and Liquor Commission (AGLC) will use to sell cannabis online.
OnX Enterprise Solutions won a three-year, $15.8-million contract to develop the AGLC online cannabis sales platform.
OnX, which has offices throughout Canada, the United States and the United Kingdom, was acquired by Ohio-based Cincinnati Bell Technology Solutions in November 2017.
“OnX’s multi-national client base, solid reputation, along with their extensive experience implementing thousands of information technology solutions throughout North America and the UK, were key deciding factors in our choice,” AGLC vice president and COO Niaz Nejad said.
“We are confident that the creation and management of Alberta’s online cannabis sales system is in good hands.”
While the initial contract is for three years, AGLC has the option to extend OnX’s involvement for up to a total of 10 years.
The contract was awarded through a negotiated request for proposal process which was posted in early February 2018.
Cannabis sales are expected to be a money-losing enterprise for AGLC in the first two years of operation.
The 2018-19 Alberta fiscal plan estimates the commission will lose $90 million through 2020 due to product acquisition and setup costs.
The online store is expected to make $37 million in the 2020-21 fiscal year.