Cannabis NB’s retail plan for the green stuff is in the red, with $3.5 million lost this year.

Michael Armstrong, an associate professor at Brock University’s Goodman School of Business in St. Catharines, Ont., isn’t surprised.

He told CBC News the introduction of edibles, tropicals and extracts will only work if the Crown corporation in New Brunswick can “get their price down and product quality up.”

“You’ve got to have the products available, which they are now that the shortages are largely gone,” he said, adding that he didn’t take early sales projections seriously because of the lack of product.

“The legal industry has taken a bite … nationally, it might be around, say, a quarter of cannabis is now sold legally. In the Atlantic provinces, it’s probably a bit higher but there’s still a long way to go.”

Cheaper cannabis and fewer pot shops may help New Brunswick profit from cannabis. Lars Hagberg / AFP / Getty Images

The underground market has been to blame for the lack of profit in New Brunswick, with Armstrong saying pot users are committed to dealer because “presumably found products they liked, prices they liked.”

Patrick Parent, CEO of Alcool NB Liquor (ANBL) and Cannabis NB, also admitted to the problem.

“There’s no doubt there are challenges from the pressures, the revenue pressures, coming from the illicit markets. They’re growing on a regular basis,” he said.

Armstrong thinks the province would need to start selling cannabis at roughly $5 per gram to take on its illegal competitor.

He recommends trying a lower cost structure and fewer shops, pointing to other maritime provinces that set up cannabis shops in pre-existing liquor stores.

“When you have that store-within-a-store concept, you don’t need nearly as much sales to cover the costs and with even moderately modest sales you can start to earn a profit.”