(The headline for this story has been corrected to reflect the deal’s $16 million price tag.)
Nevada-based GB Sciences, which has been under contract with Louisiana State University to cultivate medical marijuana, sold its 50% ownership stake in GB Sciences Louisiana.
The stake will be purchased by Wellcana Plus, a Lafayette, Louisiana-based company which holds the other 50% of the operation, by the end of October, according to a release.
The sale is for $16 million to Las Vegas-based GB Sciences; $7 million in cash at closing, $1 million in cash within 60 days of closing and the remaining $8 million as an earn out.
The actual proceeds realized through the earn out and the timing of those proceeds will depend upon the profitability of the Louisiana operations.
GB Sciences’ contract with LSU is one of two such university deals in the state. The other is Lafayette-based Advanced Biomedics’ contract with Southern University.
Louisiana began its first MMJ sales earlier this summer.
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