GB Sciences, the Las Vegas-based company handling medical marijuana operations for the LSU AgCenter, has leased a former Pepsi distribution site near Highland Road and Interstate 10.
GB Sciences LLS, the entity set up to operate the local medical marijuana business, signed the lease for the 5.40-acre site at 18350 Petroleum Drive in August, according to a quarterly filing GB Sciences made Wednesday with the U.S. Securities and Exchange Commission. Along with the land, the property has a 36,125-foot-square building on the site.
Under the terms of the lease, GB Sciences is spending $25,588 a month on rent through June 2022. If the company decides to extend the terms of the lease, it will bump up to $28,147 in August 2022. If a second lease option is extended, the rent will rise to $30,966 in August 2027.
Under GB Sciences’ five-year licensing contract, the LSU AgCenter will receive a minimum financial contribution of $3.4 million, or 10 percent of gross receipts. GB Sciences will pay at least $1 million for the first year of the contract and $600,000 for the remaining years. The company will also make an annual research investment of $500,000 to the AgCenter. The company finalized its agreement with the AgCenter in September.
Construction of the production facility should be finished by March and medical marijuana should be available by late summer, AgCenter officials said.
LSU AgCenter officials asked that the location of the medical marijuana facility be kept confidential because of safety and vandalism concerns, said Bill Settoon Jr., vice president and general manager for GB Sciences Louisiana. But the address was revealed in the SEC filing.
Two off-duty East Baton Rouge Sheriff’s deputies will be on the scene while operations are ongoing at the facility, he said.