Bright Green has achieved several key milestones throughout the Quarter advancing progress against its strategic plan.
Continued marketing of its fundamental capital raise of $500+ million utilizing the U.S. Citizen & Immigration Services EB-5 program.
Made substantial efforts to expand its business to include production of additional controlled substances in full compliance with state and federal laws.
GRANTS, N.M., Nov. 22, 2023 (GLOBE NEWSWIRE) -- Bright Green Corporation (Nasdaq: BGXX) (“Bright Green” or “the Company”), one of few companies selected by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications, and affiliated export, reported financial results for the quarter ended September 30, 2023.
“This quarter, Bright Green was focused on several key operational and strategic milestones revolving around searching for and onboarding a new Chief Executive Officer with significant international and cannabis experience and marketing of the EB-5 capital raising program” said Terry Rafih, the Company’s Executive Chairman. “We remain committed to making strategic decisions to maximize shareholder value with minimum further dilution, as well as, capitalize on the opportunity to secure the ability to produce controlled substances beyond cannabis.”
Strategic Highlights for Third Quarter 2023
The Company focused on the marketing of its previously announced plans to raise approximately $500 million utilizing the USCIS EB-5 Program to accelerate its growth strategy and generate significant capital for use in its greenhouse construction and operations in Grants, New Mexico.
The EB-5 Program, which President Biden reauthorized in 2022, is an innovative vehicle for spurring investment and job creation in rural communities. Bright Green’s participation will add significant value to the region, while also generating the capital needed for its commercial and business initiatives.
To date, Bright Green has sold 44,010 shares of common stock at $39.99 per share, receiving proceeds of approximately $1.76 million. The Company is working diligently to finalize agreements with prospective EB-5 investors.
The Company announced its expectations of minimum debt and minimum share dilution to execute our business plan and be the lowest cost, and highest quality producer of pharmaceutical cannabis in both dried flower and extract based applications for sales domestically and export to the European markets.
The Company announced an exclusive partnership with Asia Capital Pioneers Group to present the EB-5 offering to investors that fulfill the requirements for permanent U.S. residency via an EB-5 Investment Visa in the Asia-Pacific region.
The Company appointed industry veteran Groovy Singh as the new Chief Executive Officer to support the company in its next evolution, which be focused on investing in top talent, commencement of commercial operations, and investing in clinical research and development of plant based therapies, and expanding into cultivation and manufacturing of other scheduled substances.
The Company applied for expansion of its cannabis business to now include the production of additional controlled substances in full compliance with state and federal laws. In preparation for upcoming government inspections, Bright Green’s Grants, New Mexico facility is undergoing the necessary changes to accommodate the expansion plans. Government inspections are expected to be conducted over the next month.
The Company announced an agreement with Lynn Stockwell, the Company’s largest shareholder to settle approximately $3.6 million in debt with shares priced at a market premium. To settle the debt, the Company issued 2,827,960 unregistered shares of common stock, and unregistered warrants to purchase up to 2,827,960 shares of common stock at an exercise price of $3.00 per share.
Financial Highlights for Third Quarter 2023
The Company recorded no revenues for the quarter, as it continues to construct facilities for its cannabis cultivation, research, and distribution, as well as obtaining necessary registration and quota approvals.
Total operating expenses of approximately $1.8 million, down from approximately $5.8 million in the same quarter of 2022, in line with expectations as the third quarter of 2022 includes significant costs associated with stock based compensation and professional fees. Of the approximately $1.8 million in operating expenses, approximately $0.7 million corresponds to equity-based compensation to officers, contractors, and professional services providers.
Net loss of approximately $1.9 million, in line with expectations.
Basic and diluted loss per share of $0.01 for the quarter.
Balance Sheet and Capital Allocation
As of September 30, 2023, the Company had cash of $121,724.
Total liquidity of approximately $15.1 million, including the Lynn Stockwell credit facility.
During the nine months ended September 30, 2023, the Company raised approximately $3.1 million through the issuance of common stock and accompanying warrants to purchase shares of common stock from the Company’s private placement offering.
Bright Green’s balance sheet and statement of operations are provided below. Additional information is included in the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2023, which can be accessed at: https://investors.brightgreen.us/news-events/news-releases
About Bright Green
Bright Green is one of the very few companies eligible for authorization by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications, and affiliated export. Our registration by 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. Such forward-looking statements include those related to our EB-5 Program capital raise. 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. 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 for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on April 17, 2023, and in the Company’s subsequent Quarterly Reports on Form 10-Q, 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 subsequent to 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.
