Key first step for Louisiana medical marijuana: Grower approved for LSU
BATON ROUGE, La. The first medical marijuana production deal struck in Louisiana is expected to bring the states flagship university at least $3.4 million over five years, under terms discussed Thursday.
In its bid offer, the contractor agreed to pay that amount or 10 percent of gross receipts, whichever is higher, to the LSU Ag Center for permission to grow medical marijuana. Las Vegas-based GB Sciences Inc. also has agreed to a $500,000 annual contribution for research.
The LSU Board of Supervisors gave its blessing to the arrangement Thursday, authorizing System President F. King Alexander to work out details of a final contract with GB Sciences. The board chairman also will have to sign off on the deal before it can take effect.
The AgCenter selected GB Sciences from seven potential vendors.
Louisiana lawmakers agreed to a framework for dispensing medical marijuana in 2015, but only allowed the agricultural centers at LSU and Southern University to grow the product. The law will eventually get medicinal-grade marijuana to people with cancer, a severe form of cerebral palsy, seizure disorders, epilepsy, muscular dystrophy and other diseases. Eligible patients are expected to have access to the drug next year, under the LSU plans.
Bill Richardson, leader of the LSU AgCenter, said the biggest attraction for growing medical marijuana is the scientific research that can be conducted on its use for disease treatment.
I dont want to be just another weed grower, Richardson said. The research, thats why a university could justify being involved in this.
GB Sciences CEO John Poss said his companys interest also rests in research.
Cannabis is a plant whose mysteries are just now being unlocked, Poss told the board. Were as excited by the research as we are by the financial opportunity.
At least one other competitor for the contract questioned if GB Sciences, which is a penny-stock firm with millions in losses, could meet the payments promised to LSU. Several board members said Thursday they want follow-up information on the financial arrangements of the LSU AgCenter deal and about the companys financial background before Alexander signs the contract, which could be extended up to 15 years.
I would like to get comfortable on a contract this controversial, said board member ...
