The deal between Las Vegas-based GB Sciences Inc. and Lafayette-based Wellcana Plus LLC to take GB Science Louisiana private expected to close on Oct. 31 has been delayed until Nov. 30.
Publicly traded GB Sciences had agreed to sell its remaining 50% stake in its Louisiana medical marijuana business for $16 million to Wellcana Plus, which already owns the other half of the company.
The parties "were not prepared to close" a negotiated purchase agreement by the end of October, according to a news release on Wednesday.
Based on a 5-year deal signed in 2017, GB Sciences Louisiana is the exclusive partner for LSU's state-approved medical marijuana program and that arrangement now goes into the hands Wellcana Plus as the full owner of GB Sciences Louisiana. GB Sciences Louisiana sells and produces wholesale medical marijuana products that are sold in the nine state-licensed pharmacies across the state.
Wellcana's deal with GB Sciences includes $8 million cash and another $8 million to be paid at a later date.
Wellcana, led by Lafayette attorney Charles Rush and Cajungrocer.com founder Charlie Hohorst III, has been involved in GB Sciences Louisiana for the past two years. Wellcana acquired a 15% stake in February 2018 for $3 million and amassed its larger stake over the next year.
Neither LSU nor GB Sciences Louisiana expect the sale of the business to impact the contract since the company will continue to exist but will be controlled by Wellcana.
Las Vegas-based GB Sciences Inc. agreed to sell its remaining 50% stake in its Louisiana medical marijuana business for $16 million to Wellcan…