GB Sciences on Friday, September 13, 2019, filed an 8k announcing the sale of its 50% ownership stake in GB Sciences Louisiana, LLC. According to the company, the stake will be purchased by Wellcana Plus LLC, affiliated through its managers with the group which holds the other 50% of the Louisiana operations. Expected to close by the end of October 2019, the sale is for $16 million to 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.
"The sale will greatly reduce the current and future burn rate of the Company and allow it to focus on achieving profitability, seeking a DEA license, and implementing GMP, a set of regulations promulgated by the US Food and Drug Administration to ensure quality control in the manufacture of pharmaceuticals, dietary supplements and natural health products among other substances, at its Las Vegas, Nevada location," the team with the company explains. "GB Sciences also will continue to develop its clinical cannabis formulations for which the Company has filed numerous patents, progressing the research towards clinical trials and first-in-human pilot studies."
"GB Sciences and GB Sciences Louisiana will endeavor to collaborate on research and clinical trial opportunities, and the Company will grant GB Sciences Louisiana the opportunity to license the Company's proprietary formulations for use in research and final formulations upon mutually agreeable terms," they conclude.
For more information:
GB Sciences
3550 W Teco Avenue
Las Vegas NV 89118
866.721.0297
info@gbsciences.com
gbsciences.com