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GB Sciences Closes the Sale of GB Sciences Louisiana Cannabis Business to Wellcana Plus and Retains the Benefit of IP Developed Under GB Sciences Louisiana's Master Research and Development Agreement
GB Sciences Closes the Sale of GB Sciences Louisiana Cannabis Business to Wellcana Plus and Retains the Benefit of IP Developed Under GB Sciences Louisiana's Master Research and Development Agreement.
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[{"type":"text","content":"\n\n\n\nGB Sciences Closes the Sale of GB Sciences Louisiana Cannabis Business to Wellcana Plus and Retains the Benefit of IP Developed Under GB Sciences Louisiana's Master Research and Development Agreement\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nGB Sciences Closes the Sale of GB Sciences Louisiana Cannabis Business to Wellcana Plus and Retains the Benefit of IP Developed Under GB Sciences Louisiana's Master Research and Development Agreement\nPR Newswire\nLAS VEGAS, Nov. 18, 2019\n\n\n\nThe Sale, Which Immediately Eliminates Substantial Cash Obligations and Operating Expenses, Is Collateralized by Wellcana Plus's Interest in GB Sciences Louisiana.\n LAS VEGAS, Nov. 18, 2019 /PRNewswire/ -- GB Sciences, Inc. (OTCQB: GBLX) completed the sale on November 15, 2019 of its 50% membership interest in GB Sciences Louisiana, LLC to Wellcana Plus, LLC, an affiliate of Wellcana Group, LLC who owns the other 50% interest.  The sale immediately eliminates current cash obligations due from GB Sciences as well as the Company's share of operating expenses going forward.  While selling the cannabis cultivation and oil production business, GB Sciences retained the benefit of Wellcana Plus's 50% interest in intellectual property developed under the Master Research and Development Agreement.\n\n \n \n\n \nThe terms of the sale include a promissory note from Wellcana Plus to GB Sciences for $8 million, with payments commencing in June 2020 through December 2021.  The promissory note is secured by a pledge agreement with the 50% interest as collateral, declining pro-rata with note payments until all principal and accrued interest have been paid.  In addition to the note, there will be an earn out of $8 million from operations through the term of the Agreement for Services including renewals, if any.  The actual proceeds realized through the earn out and the timing of those proceeds will depend upon patient count accretion and the profitability of the Louisiana operations.  \nJohn Poss, CEO of GB Sciences, stated, \"We think the transaction is a win...