Lafayette firm buying out LSU’s medical marijuana partner for $16M

The Nevada-based penny-stock company that was chosen as LSU’s growing partner for its medical marijuana program will sell its remaining interest in its Louisiana subsidiary to a Lafayette firm in an effort to become profitable. 

Wellcana Group, which already owns a 50% interest in GB Sciences Louisiana, will buy the remaining half of the company as part of a $16 million deal, which was disclosed in SEC filings late last week by parent company GB Sciences. 

It’s unclear if the sale will have any impact on LSU’s medical marijuana program, which just released its first batch of products to pharmacies last month after more than a year of delays. 

As part of the deal, expected to close by the end of October, Lafayette-based Wellcana Group will buy the subsidiary for $7 million in cash at closing and an additional $1 million within 60 days of closing. The remaining $8 million will be paid as an “earn out,” though the timing of those payments are dependent on the profitability of the Louisiana operation. 

GB Sciences will collaborate with GB Sciences Louisiana on future research and clinical trial opportunities, and will offer the Louisiana firm licensing rights for the company’s proprietary medical marijuana formulations. 

Ashley Mullens, LSU AgCenter’s medical marijuana program coordinator, John Davis, president of GB Sciences Louisiana, and Tabitha Gray, the Louisiana Department of Agriculture’s medical marijuana program director, were unable to be reached for comment before this morning’s deadline.