LAS VEGAS, Sept. 17, 2019 /PRNewswire/ -- GB Sciences, Inc. (OTCQB: GBLX), on Friday, September 13, 2019, filed an 8k announcing the sale of its 50% ownership stake in GB Sciences Louisiana, LLC. The stake will be purchased by Wellcana Plus LLC, affiliated through its managers with the group which holds the other 50% of the Louisiana operations. Expected to close by the end of October 2019, the sale is for $16 million to GB Sciences, $7 million in cash at closing, $1 million in cash within 60 days of closing, and the remaining $8 million as an earn out. The actual proceeds realized through the earn out and the timing of those proceeds will depend upon the profitability of the Louisiana operations.
The sale will greatly reduce the current and future burn rate of the Company and allow it to focus on achieving profitability, seeking a DEA license, and implementing GMP, a set of regulations promulgated by the US Food and Drug Administration to ensure quality control in the manufacture of pharmaceuticals, dietary supplements and natural health products among other substances, at its Las Vegas, Nevada location. GB Sciences also will continue to develop its clinical cannabis formulations for which the Company has filed numerous patents, progressing the research towards clinical trials and first-in-human pilot studies.
GB Sciences and GB Sciences Louisiana will endeavor to collaborate on research and clinical trial opportunities, and the Company will grant GB Sciences Louisiana the opportunity to license the Company's proprietary formulations for use in research and final formulations upon mutually agreeable terms.
About GB Sciences, Inc.
GB Sciences, Inc. (OTCQB: GBLX) is a diverse cannabis company, focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. The Company's goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions. To learn more about GB Sciences, Inc., go to: http://gbsciences.com.
This press release may contain statements relating to future results or events, which are forward-looking statements. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import may identify forward-looking statements. These statements are not historical facts, but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further, information concerning the Company and its business, including factors that potentially could materially affect the Company's business and financial and other results, are contained in the Company's filings with the Securities and Exchange Commission, available at www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.
Note: Although the Company's research and development activities are not illegal, the production and sale of cannabis products violate federal laws as they presently exist.
GB Sciences, Inc., 3550 West Teco Ave., Las Vegas, NV 89118 866-721-0297, or Liz Bianco, [email protected]