LAS VEGAS, February 14, 2018 – GB Sciences, Inc. (OTCQB: GBLX) and its wholly-owned subsidiary GB Sciences Louisiana, LLC (GBSL) are pleased to announce the completion of a new agreement with Wellcana Group, LLC (Wellcana) to work together on the previously announced initiative for the development of medical cannabis in Louisiana, a joint effort of the Louisiana State University AgCenter and GBSL, operating under the AgCenter’s medical cannabis license, which is one of only two licenses granted by the State.
The terms of the agreement provide that Wellcana will buy 15% of the newly-issued equity of GBSL for $3 million. Wellcana also has an option to purchase an additional 35% for an additional $7 million investment. This new influx of cash will enable GB Sciences to redirect financial resources already earmarked for the Louisiana project to other areas of operation and in other jurisdictions. The new funds will be used to complete the construction of the Louisiana infrastructure, and for general corporate purposes.
This new agreement also furthers the goals of GB Sciences to bring strategic Louisiana investors into the project. Wellcana will have the right to appoint members to the Board, of which two shall be Louisiana residents.
GB Sciences CEO, John Poss, said “Our intent has always been to bring Louisiana investors into our project. We are extremely fortunate to be partnering with Wellcana, an organization that shares our commitment to providing the highest quality medical cannabis to the patients of Louisiana. We could not be happier with this arrangement, in part because it represents such a novel and progressive blending of public and private sector resources to achieve important results, for everyone’s benefit.”
Wellcana Executives believe: “This investment represents the culmination not only of our own goals and dreams, but of the goals and dreams of many Louisiana patients that will be the direct beneficiaries of our joint efforts. We feel that Louisiana is at the forefront of intelligent development of medical marijuana, and we believe that the significant research talents and resources of the AgCenter will produce new formulations that will greatly benefit the entire country. We are proud to be citizens of a state that has demonstrated such forward thinking in such a regulatorily difficult but crucially important field.”