The company licensed to produce medical marijuana in Louisiana by the LSU AgCenter has sold a 15 percent stake in the venture for $3 million to a newly formed Lafayette company to help finance its effort.
Las Vegas-based GB Sciences Inc.’s agreement with Wellcana Group LLC also gives Wellcana the option to purchase another 35 percent of the equity in subsidiary GB Sciences Louisiana LLC for an additional $7 million investment.
According to information on the Louisiana Secretary of State’s website, Wellcana was formed in Lafayette last month. Its registered agent is Lafayette attorney Charles Rush and the officer is K2 Logic LLC, which has an address the same as Rush’s law office. K2 Logic’s officers are Rush and Charlie Hohorst III, a Lafayette businessman who founded CajunGrocer.com, an online retailer for Louisiana food and specialty items. Rush and Hohorst did not immediately respond to requests for comment.
GB Sciences said the new funds will be used to complete the construction of the Louisiana infrastructure for medical marijuana, and for general corporate purposes. The influx of cash also will enable GB Sciences to redirect financial resources already earmarked for the Louisiana project to other areas of its operation and in other jurisdictions.
The LSU AgCenter holds one of two licenses granted by the state for medical marijuana. GB Sciences Louisiana LLC and Wellcana will work together with the LSU AgCenter on the initiative.
The other state license is held by Southern University.
GB Sciences said the Wellcana agreement furthers its goal of bringing Louisiana investors into the project, but did not name any of the investors in a