GB Sciences, a Las Vegas company contracted to develop the Louisiana State University AgCenter’s medical marijuana products and manufacturing program, has sold a 15% stake in the venture.
Wellcana Group, which was formed last month in Lafayette, Louisiana, paid $3 million for its share of the project, The Advocate reported.
The capital will be used for construction and general corporate purposes.
The agreement gives Wellcana the option to purchase an additional 35% of equity in GB Sciences Louisiana for $7 million, according to the Baton Rouge newspaper.
The deal also gives Wellcana the right to appoint members to the GB Sciences Louisiana board, two of whom will be residents of the state.
Wellcana’s registered agent is Lafayette attorney Charles Rush, and the officer is K2 Logic.
K2 Logic is headed by Rush and Charlie Hohorst III, a Lafayette businessman who founded online retailer CajunGrocer.com, according to The Advocate.
Louisiana State University had not say in the transaction, a school spokesman said.
Under regulations established by the legislature in 2016, Louisiana State University and Southern University are the only entities permitted to grow medical cannabis for the state’s legal MMJ patients.
The production facility is expected to be finished in March and medical marijuana could be available by late summer, The Advocate reported.