On April 3, 2017, GB Sciences (OTCQB:GBLX) announced that it had submitted an offer to cultivate, extract, process and produce medical cannabis for Louisiana State University, one of two state-sanctioned medical cannabis cultivators.
“GB Sciences is looking forward to the prospect of working with LSU on GB Sciences’ cannabis tissue propagation technology,” the company said in a statement.
According to LSU’s Solicitation for Offer, “All offers must be accompanied by a bid bond in the amount of $1,000,000 (One million dollars) and must be in the form of a certified check, cashier’s check or bid bond form written by a surety company licensed to do business in Louisiana, signed by the surety’s agency or attorney-in-fact, payable to the University.”
In addition to the bid bond, the SFO explains that the applicant selected to cultivate medical cannabis on behalf of LSU will have to maintain a performance bond of no less than $1 million during the length of the agreement.
“In order to fulfill the requirements of the application, GB Sciences is raising two million dollars in bonds. The bonds will collateralize a required bid bond associated with the offer to LSU,” the company explained.
According to the Marijuana Index, GBLX opened at $0.36 today and closed at $0.353, with share volume logging in just under 500,000.
LSU’s application deadline was on March 21, and the university plans to make its notice of intent to award an exclusive agreement to the selected applicant by the middle of May 2017.
Southern University, the other state-sanctioned medical cannabis cultivator, has yet to issue its request for proposals from cultivators hoping to run SU’s medical cannabis program.