On Sept. 18, 2017, the Louisiana State University Agricultural Center announced that it had finalized its LSU medical marijuana contract with GB Sciences Louisiana, a subsidiary of GB Sciences (OTCQB:GBLX). GB Sciences Louisiana will produce medical marijuana for the LSU AgCenter, a state-sanctioned medical marijuana cultivator.
“We are excited about the opportunities this partnership with GB Sciences will allow,” said Bill Richardson, LSU vice president for agriculture, in a press release. “GB Sciences is as dedicated to the research and quality as we are, and their team will make this initiative successful.”
“We are extremely honored and excited to be working with LSU on this project,” said John Poss, chairman and CEO of GB Sciences. “This is another major step in taking cannabis out of the shadows and into the university research labs, where it has always rightfully belonged. This is a historic event, and we can’t wait to get started.”
With production facility renovations commencing immediately, GB Sciences plans to have medical marijuana available to patients by mid-2018.
According to a previous notice from the LSU’s Board of Supervisors, “Based upon the offer from [GB Sciences], the initial five (5) year contract would bring a minimum guaranteed financial contribution to the LSU AgCenter of $3.4 million, or a commission of 10% of gross receipts, whichever is greater.”
After the AgCenter issued its Solicitation for Offer on the LSU medical marijuana contract, it received seven applications by the application deadline, but only four met the mandatory minimum qualifications. Those four eligible applicants gave oral presentations to LSU’s evaluation team and then submitted their final offers, with the team choosing the offer from GB Sciences.