BATON ROUGE, La. (AP) – The first medical marijuana production deal struck in Louisiana is expected to bring the state’s flagship university at least $3.4 million over five years.
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.
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 Inc.
The AgCenter selected the Las Vegas-based company to manage the growing operations from seven potential vendors who applied.
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.