Leave it to an intelligent professor at LSU to come up with a legal, awesome, and profitable way of turning an abandoned warehouse into a 15,000-square-foot marijuana growing facility. This morning, the LSU AgCenter announced its plans to build an $11.3 million marijuana grow facility that would also be able to produce and research marijuana products. Oh, and they’ll have a state-sponsored monopoly on selling marijuana in the state of Louisiana, too.
The catch with the LSU AgCenter monopoly (which they share with the Southern University AgCenter) is that they won’t be able to sell anything smokable. TheAdvocate.com writes that they’ll only be able to sell marijuana that can be “in a liquid, such as an oil or spray; capsules or pills; edible dosages, topical applications, trans-dermal patches or suppositories.” That shouldn’t be too much of a problem, though, considering that part of the business plan is to develop not just new strains of marijuana and THC, but also new types of marijuana products.
From the business plan:
In a market where every detail down to the marijuana strain type is protectable, proper understanding of how and when to protect your IP is vital. The AgCenter will register and own all of the IP developed in the Production Facility. The public benefit corporation that will be set up to operate the Production Facility will have the right of first refusal on the commercialization of any IP generated by the AgCenter.
From the business plan’s estimates, it will take the AgCenter five years to start making money on their venture. But just because they start becoming cash positive doesn’t mean they’ll start recouping their costs until much later. Still, though, the marijuana business is growing at a massive level and will only continue to boom once the Federal Government pulls its head out of its butt.
Again, from TheAdvocate:
The LSU AgCenter includes three projections for the business, none of which contemplate any sales until 2018. At the low level, 2018 sales will be $727,000 and reach $13.1 million by 2024. But the business will still be losing money. At the mid-level, 2018 sales will be $1.4 million and hit $16.1 million by 2024. Revenue will outstrip expenses in 2023. At the high level, 2018 sales will be $2.4 million and rocket to $20.1 million by 2024. In this model, revenue will be higher than expenses by 2020.
The plan says several commercial locations are available, but they will require extensive retrofitting and renovations. The estimated expenses include $400,000 for a security system; $675,000 for the areas needed to bud and grow the plants; and $930,000 for labs, vault and a 1,000-square-foot research lab.
Currently, the only other school in the nation growing marijuana is the University of Missouri, but they’re providing their products and resources to the federal government. What separates LSU from the pack is that the LSU AgCenter is going be the first instance of a state college providing weed to a medical marijuana program.
Sounds like the LSU AgCenter has a pretty solid plan through and through. The only thing we poured through the whole business plan page by page, but nowhere did it explain why Tyrann Matthieu would be the lone non-scientist granted 24/7 access to the facility.