Growblox Sciences Inc. (OTC: GBLX), a biopharmaceutical research and development company with state-of-the-art technologies in plant biology and cultivation designed to produce consistent medical cannabis, recently announced that it has established Growblox Sciences Puerto Rico following Governor Alejandro Garcia Padilla’s executive order authorizing the production of medical cannabis within the U.S. territory.
“As widely reported, Puerto Rico Governor Alejandro Garcia Padilla recently signed an executive order authorizing the production of medical cannabis,” said Growblox Sciences Inc. CEO Craig Ellins. “We are very excited by the timing of this announcement as it coincides with our continuing presence in Puerto Rico and our commitment to realizing significant fundamental growth this fiscal year.”
In connection with the new majority-owned subsidiary, the company entered into a commercialization agreement with the new subsidiary to accelerate the production and marketing its proprietary cultivation suite. The company believes that the growing chambers and related equipment will facilitate the global manufacturing and distribution of cannabis and other solutions to combat health issues.
Growblox Sciences Puerto Rico has been granted the exclusive worldwide rights to produce, lease and license the Growblox technology suite, as well as the potential for other revenue streams, including the financing of Growblox technology suite units, fees for training and maintenance, and diagnostic monitoring services during cultivation, targeting Puerto Rico’s growing market.
In addition to these terms, the agreement states that GrowBlox Sciences Puerto Rico will sell cGMP-certified raw cannabis and hemp materials only to Growblox for international resale or manufacturing of cosmeceutical, nutraceutical, and pharmaceutical products. The operation will be headed by local entrepreneur Cesar Cordero-Kruger, who will maintain a 13% equity stake in the new subsidiary.
“For almost the past year, Growblox has been exploring initiatives in Puerto Rico including potential projects with the University of Puerto Rico,” added Mr. Ellins in the press release. “We are pleased to announce the leadership and support of a recognized figure such as Cesar.”
Shares of Growblox Sciences Inc. were unchanged in early trading on Wednesday, May 13, 2015 following the news release.
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