BRIGHT GREEN ANNOUNCES PLANS FOR $250 MILLION EXPANSION OF ITS CONTROLLED SUBSTANCES DRUG PRODUCTION FACILITY IN GRANTS, NEW MEXICO AND OBTAINS $60 MILLION IN FINANCING
GRANTS, NEW MEXICO, March 12, 2024 (GLOBE NEWSWIRE) -- Bright Green Corporation (Nasdaq: BGXX) (“Bright Green” or the “Company”) today announced that it has signed an agreement with Dalsem Greenhouse Technologies BV for a $250 million construction project to expand the Company’s current research, production and extraction processing facility located in rural Grants, New Mexico (the “Dalsem Agreement”). The proposed expansion will add 7 million square feet of manufacturing and production capabilities. The Dalsem Agreement provides that Dalsem will construct the additional facility to its specifications and build them in a modular fashion.
Additionally, the Company has entered into a credit agreement with a lender for a $60 million senior debt financing to fund the expansion construction project (the “Credit Agreement”). The Credit Agreement has a term of 10 years with a fixed interest rate and will have a $5 million tranched draw schedule with up to 12 draw requests over the 10 year term. The remainder of the funds are expected to be sourced from the Company’s EB-5 investment visa oppertunity, currently being marketed by Asia Capital Pioneers Group.
This expansion is a direct result of Bright Green obtaining the regulatory approvals for the production of Schedule I and II controlled substances from the DEA and the State of New Mexico Board of Pharmacy. The expansion will facilitate the production and manufacturing required to process the active pharmaceutical ingredients (“API”) and to make generic prescription drugs, supporting Bright Green's “Drugs Made in America” initiative.
Lynn Stockwell, Bright Green’s Chairwoman said “This cutting-edge bespoke greenhouse project incorporates state of the art technology and is designed with a modular approach. The number of modules constructed at any given time is contingent upon the capital from our EB-5 investors and other federal infrastructure assistance. I am also pleased to confirm that this project will be powered by energy from solar panels with the components soon to be produced here in Albuquerque. Ms. Stockwell continues “shareholders will benefit from a producer/manufacturer with a solar power generation field as the state and federal tax credits are unprecedented allowing our rural based company significant advantages over foreign competition resulting in a low-cost generic drug manufacturing company and importantly, leaving a carbon neutral footprint.”
CEO Groovy Singh expressed his optimism for the impact the expansion will have for its “Drugs Made In America” plan. Mr, Singh shared that “Bright Green is the first company in almost a century to receive approval to produce these controlled substances in the U.S., so this is a new concept for the U.S. pharmaceutical industry. The opportunity to mitigate the national security risk associated with dependency on foreign imports—manufactured in countries that may have different ideologies and quality standards that practiced by U.S companies—is to substantial to ignore.”
The company is finalizing negotiations for the necessary services from the city, landowners' land parcels and the necessary state permitting for the construction and occupancy.
The company believes the fully integrated approach in rural Grants, New Mexico will substantially reduce the costs of drugs to both the state and all Americans.
About Bright Green Corporation
Bright Green is one of the very few companies selected by the New Mexico Board of Pharmacy and the US government for the production, API and drug manufacture, market and distribute Schedule 1-V plant-based drugs API including opium, cannabis and cannabis-related products for research, pharmaceutical applications, and affiliated export. Our approval based on already agreed terms from the U.S. Drug Enforcement Administration gives us the opportunity to advance our vision of improving quality of life through the opportunities presented by cannabis-derived therapies. To learn more, visit www.brightgreen.us.
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management as of such date. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including but not limited to, the inability of the Company to raise funds under the Company’s EB-5 program, and the impact that new officers, directors and employees may have on the Company and the Company’s business and results of operations. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as amended and supplemented, as well as other documents that may be filed by the Company from time to time with the SEC. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date after the date of this press release. Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov.
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