Gb Sciences, Inc. (OTCQB:GBLX) announced Tuesday that it has closed the sale of its last remaining cannabis facility, completing a transition to the biopharmaceutical industry.
What Happened
Based in Las Vegas, the company reported that management's decision to end all connections to the cannabis cultivation industry positions Gb Sciences to uplist its stock to a senior exchange and attract institutional investors and strategic partners in the biopharmaceutical drug development sector.
The sale of Gb Sciences' Las Vegas cannabis facility, valued at $8 million, was finalized on Dec. 31 following the required transfer of Gb Sciences' cannabis production and extraction licenses to AJE Management, LLC by the Nevada Cannabis Compliance Board.
The sum included $1.2 million in cash, $3.8 million in immediate debt and liabilities reduction and a $3 million interest-bearing note payable to Gb Sciences by the buyer over a three-year term.
Why It Matters
The move will allow Gb Sciences to reduce outstanding debt and bolster its cash position.
Dr. Andrea Small-Howard, president and chief science officer of Gb Sciences, said that they can now "concentrate all our energies on advancing our plant-inspired, biopharmaceutical research and development programs into human clinical trials."
Gb Sciences' intellectual property portfolio includes five U.S. and three international patents that were issued to protect therapeutic mixtures for Parkinson's disease, chronic pain, hyper inflammation and heart disease.
The company also has 12 U.S. and 43 international patent-pending applications, which provide patent protection for both PhAROS™, its proprietary drug discovery engine and its novel, plant-inspired combination drugs to treat more than 65 severe medical conditions.
"We have emerged from this sale as a pure-play biopharmaceutical research and development company," said John Poss, the company's chairman and CEO.
What's Next
Poss added that the company is now positioned to "generate substantial value from our unique pipeline of patent-protected formulations for the prescription drug market that targets a range of serious medical problems."
GBLX Price Action
Gb Sciences' shares traded at $0.0292 per share at the market close on Monday.
Photo: Courtesy of Josh Appel on Unsplash
