Louisiana State University has completed its contract with a company that will grow medical marijuana and expects production to begin as early as mid-2018.
The LSU AgCenter said in announcing the arrangement Monday that its new partner, Las Vegas-based GB Sciences, will start renovating its production facility immediately, The Advocate reported.
The deal was formalized despite a protest in which a competitor that was passed over for the contract questioned GB Sciences’ financial stability.
GB Sciences has agreed to pay LSU $3.4 million over five years or 10% of gross receipts, whichever is higher.
In agreeing to a framework for dispensing medical marijuana, Louisiana lawmakers allowed only the LSU and Southern University agricultural centers to grow the product.
Southern hasn’t yet chosen its grower, but the school is expecting final offers from the three finalists on Monday, according to The Advocate. The university’s board is scheduled to meet Sept. 22 to choose a vendor.
Under state law, the universities may produce only MMJ oil for use in pills, sprays or chewables, topical applications, transdermal patches and suppositories.
credit:mjbizdaily.com
