Louisiana medical marijuana maker planning major expansions, launch of hemp-derived CBD products

Louisiana medical marijuana maker planning major expansions, launch of hemp-derived CBD products 1

Wellcana Group has big expansion plans for its LSU-licensed medical marijuana operations in Louisiana and is separately courting farmers to grow hemp to support the company’s launch soon into CBD products.

Wellcana — which already operates out of Baton Rouge and is one of only two companies approved in the state to produce medical marijuana — is scouting out land in a less-populated area between Baton Rouge and Lafayette for additional cultivation room for medical marijuana, officials said.

The company expects to build a 100,000-square-foot indoor marijuana greenhouse and storage facility that will create between 100 and 200 new full- and part-time jobs. It also would be a center for collecting hemp grown by area farmers for Wellcana’s planned push into CBD, cannabidiol, products that have grown nationally in popularity for their perceived health benefits.

At the same time, Wellcana expects to expand its Baton Rouge facility off Highland Road near Interstate 10 to primarily clone and process plants and make medical marijuana products being sold to about 5,000 patients so far through nine state-approved pharmacies through licensed-doctors’ recommendations.

Currently, Wellcana’s Baton Rouge facility can grow a limited number of marijuana plants and manufactures tinctures for patients suffering from specific ailments outlined in state law. The company also has been developing prototypes for salves, strips that dissolve on the tongue, metered inhalers and chewable medicine, which contain THC, the active ingredient in medical marijuana products. The facility also will be producing Wellcana’s hemp-based CBD products, which don’t contain THC and can be sold over the counter at all kinds of retail outlets and marketed for its own health benefits.

“We’ll roll out topicals first and then the strips, and then the edible chews. Then metered dose inhalers,” Wellcana Chief Executive Officer John Davis said of the company’s medical marijuana products.

CBD products will be rolled out in similar forms, with the exception of the inhalers, he said.

Right now, the company is tightly packed in its Baton Rouge facility, Davis said. Next month, Wellcana plans to build two more stand-alone pods at its Highland Road facility that will be used for manufacturing products after oils are extracted in another room from medical marijuana plants grown on-site.

A deal for the new off-site growing and storage facility planned between Baton Rouge and Lafayette is expected to close soon, likely with cooperation from a small town, Davis said, without elaborating on negotiations or the location.

“We’re also going to put together an industrial hemp processing center there, too,” Davis said.

That will support production of CDB products, which the company has been developing from hemp. Hemp-derived CBD oils do not contain significant amounts of THC and can be sold legally by retailers.

The stage already has been set by federal and state government for growing hemp, a strain of the Cannabis sativa plant and nonpsychoactive cousin to marijuana, in Louisiana. On Dec. 23, Louisiana’s industrial hemp plan was approved by the U.S. Department of Agriculture. On Dec. 27, the state’s industrial hemp program began accepting license applications to produce, transport and process industrial hemp in Louisiana.

Wellcana already has been courting farmers for a supply of hemp. Davis trekked to a meeting near Alexandria a few weeks ago to meet farmers at an informational session about hemp that was hosted by the LSU AgCenter.

Davis said the session was standing room only with more than 500 attendees.

Wellcana envisions setting up a system akin to a sugar cooperative, where farmers can buy hemp clones rather than seeds alone, stick them in their fields and return with a fully grown cash crop.

The goal is for Wellcana to source enough hemp biomass so it can supply each of its new CBD products, with the cultivation center between Baton Rouge and Lafayette growing and supplying additional medical marijuana.

“Right now, we can (supply our own biomass) because the market is so slow in ramping up,” Davis said. “We can supply this five times, but in the future when we have different delivery systems (for hemp and medical marijuana), I want to make sure that we’ve got enough biomass dedicated at each one of these lines of products.”

Wellcana has the exclusive license from LSU to grow and manufacture medical marijuana products for patients across Louisiana. Southern University holds the state’s second license and has contracted with another company for operations that are expected to start this year.

The LSU license originally was awarded to Nevada-based biotechnology company GB Sciences, which invested several million dollars into the initial cultivation and manufacturing operation in Baton Rouge through a Louisiana subsidiary. The company also has conducted research alongside LSU into cannabinoids, or the underlying compounds of the active ingredients in marijuana plants.

GB Sciences sold off its Louisiana business over the past two years to a group of Lafayette-based investors, the latest involving a $16 million deal that closed in mid-December 2019 for the half of the company Wellcana didn’t already own.

Wellcana is led by Lafayette attorney Charles Rush and Cajungrocer.com founder Charlie Hohorst III. There are more than 100 investors in Wellcana, which had raised $10 million as of February 2019, including from four former NFL players — among them a former LSU player and two former Saints players.

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