GB Sciences (OTCQB:GBLX) announced an agreement with Wellcana Group to work on the development of medical cannabis in the state of Louisiana.
As quoted in the press release:
The terms of the agreement provide that Wellcana will buy 15% of the newly-issued equity of GBSL for $3 million. Wellcana also has an option to purchase an additional 35% for an additional $7 million investment. This new influx of cash will enable GB Sciences to redirect financial resources already earmarked for the Louisiana project to other areas of operation and in other jurisdictions. The new funds will be used to complete the construction of the Louisianainfrastructure, and for general corporate purposes.
This new agreement also furthers the goals of GB Sciences to bring strategic Louisiana investors into the project. Wellcana will have the right to appoint members to the Board, of which two shall be Louisiana residents.