Louisiana State University selected GB Sciences, a Nevada-based marijuana company, to operate the school’s medical marijuana program, one of two in the state.
Under the arrangement, GB Sciences is required to make a minimum $3.4 million contribution or a 10% commission on gross receipts to the LSU AgCenter, according to the Greater Baton Rouge Business Report. The state won’t spend any money on the estimated $10 million undertaking, the Times-Picayune reported.
The company, which trades on the over-the-counter markets under the symbol GBLX, also must make a $500,000 annual investment in the university’s research on plant varieties, compounds, extraction techniques and delivery methods.
CB Medical LLC of Alexandria was the other finalist in the field of seven companies competing for the contract, The Advocate of Baton Rouge reported. Only four of the candidates met the minimum requirements to earn the bid, according to the Business Report.
The LSU Board of Supervisors will meet June 22 to approve the deal with GB Sciences.
Southern University landed Louisiana’s other contract to cultivate MMJ, but its program is developing at a slower pace.
Medical marijuana is expected to be available to qualified Louisiana patients by late 2017 or early 2018. Only 10 distributors will be allowed to sell MMJ across the state.
Because Louisiana has strict MMJ qualifying conditions, Marijuana Business Daily estimates the patient pool may reach 10,000-20,000 and will generate $15 million-$30 million in annual sales three to five years after the first dispensaries open.