The LSU AgCenter is betting the future of its medical marijuana business on a small Las Vegas company’s ability to raise the cash needed for a plant growing and processing center.
GB Sciences Inc., selected last week from among seven proposals, plans to invest up to $6.5 million over the next two years to expand an existing office-and-warehouse building and set up operations, CEO John Poss said. Patients could get the first batch of medicines as early as January or as late as March.
In order to accomplish that, the publicly traded company will have to attract more money from investors. Poss is confident the company can. Others are less so.
“If you look on their balance sheet, they don’t have a lot of money … their public filings do not show them to be very cash rich at all,” said Alan Brochstein, co-founder of 420 Investor.
GB Sciences is what is known as an over-the-counter stock. OTC companies are usually small and can’t meet the listing requirements of stock exchanges. For example, Nasdaq requires a minimum