New Brunswick, Canada’s government has established a Crown corporation which will oversee the sale of recreational cannabis in the province. Provincial government officials have signed memorandums of understanding with licensed producers Canopy Growth Corp. and Organigram to supply the New Brunswick market.

Health Minister Benoît Bourque said the plan will allow a “seamless approach” to federal legalization “that will prioritize public health and safety concerns.”

The model will effectively give the government full control over retail cannabis sales in the province, and the Crown corporation will oversee the business on behalf of the government.

“We are pleased to partner with two local companies to secure a supply for our New Brunswick market in time for the July 2018 launch,” said Finance Minister Cathy Rogers in a press release. “In addition, the creation of this new provincial Crown corporation provides the flexibility and lays the groundwork for the eventual retail model once final decisions around that have been made.”

Rogers indicated that will the Crown corporation will not directly conduct retail operations, rather it would engage with businesses and other entities to devise that framework.

New Brunswick is the latest province to announce proposed infrastructure for federal cannabis legalization. Officials in Ontario have said they will set up Liquor Control Board of Ontario-run shops; however the majority of  Ontario citizens surveyed by Nanos Research and Consumer Choice Centre said they preferred cannabis be sold by private, licensed, retailers rather than the LCB.

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