Questions raised about company LSU will contract to grow marijuana for medical uses

The loser in the bid to grow medical marijuana for LSU claims the winning company’s financial disclosures are full of “red flags” that could invite federal investigation and tarnish the university’s reputation, according to a three-page letter released Tuesday.

Reports filed by GB Sciences Inc., of Las Vegas, the winner of the LSU contract, with U.S. Securities and Exchange Commission show the company’s “financial footing is at best shaky.” And statements GB Sciences officials have used to raise enough money to fulfill its obligation with LSU “could find a basis for expecting a federal investigation to be imminent,” Kenneth L. Perego II wrote to LSU Board of Supervisors. The Alexandria physician chairs CB Medical LLC, which narrowly lost the contest for a contract to produce marijuana for medical purposes in Louisiana.

Perego asked the 16-member board that oversees policy at LSU to “consider seriously this information before finalizing the award...

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