U.S.-based company wins contract to develop and manage Alberta site for online weed sales

A U.S.-based company has won a $4.59-million contract to develop and manage the Albertaonline site for cannabis sales.

The Alberta government awarded the3-year contract to Ohio-based company OnX Enterprise Solutions, the Alberta Gaming and Liquor Commission (AGLC) announced Tuesday.

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AGLC spokesperson Michelle Hynes-Dawson said six candidates bid on thecontract in an "open process" after requests for proposals were posted on agovernment website for 12 days in February.

She said OnX, which has worked with a wide range of corporations such as Rogers, Canadian Tire and American Express,stood out for their expertise in e-commerce online sales.

TheAGLCwill oversee the distribution of cannabis, which includes sales both in retail stores and online.

According to the province's recentbudget, the government expects a $90-million net loss of marijuana revenue in the first two years while set-up and acquisition costs are expected to exceed revenue, beforemaking$37 million in 2020-21.

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Hynes-Dawsonsaid privacy, security, ease of payment and selectionand age verification areimportant features of the future online site. Cannabis can't be consumed by anyone under the age of 18.

"We've heard very clearly from the government of Alberta that's one of their key priorities," said Hynes-Dawson. "So we'll make sure we have a strong system in place."

She said consumerscan also expect to find product information to educateconsumers as they buy because "responsible use will be a big part of this."

CBC placed a call to OnX'sEdmonton office just after 3 p.m. local time and a recording stated: "You have reached us after our regular business hours."

Hynes-Dawsonsaid it's not yet known which specific type of potproducts will be sold online. The government has put out an expression of interest but hasn't awarded contracts to producers yet. But she said online sales will be up and running as soon as weed is legal.

"We will be ready for Day 1when cannabis is legalized," she said.

The federal Liberal government has said pot legalization should go into effect this summer, but a specific date remains uncertain.