Bright Green Corporation Announces Q3 Financial Update And 'Milestone' Progress

Bright Green Corporation BGXX, reported financial results Monday for the quarter that ended September 30, 2022.

Financial Highlights for Third Quarter 2022

The Company recorded no revenues for the quarter, as it continues to build facilities to grow, research and distribute cannabis, pending DEA inspection, registration, and quota approvals.

• Total operating expenses of $5.8 million, up from $0.6 million in the same quarter of 2021, in line with expectations and resulting mainly from payments to support the continued scaling of Bright Green’s operations, including professional fees paid for the partial acquisition of Alterola, salaries and equity compensation, and ramp-up expenses incurred towards commercialization.
• Net loss of $5.8 million, in line with expectations.
• Basic and diluted loss per share of $0.04 for the quarter.

Balance Sheet and Capital Allocation:

• As of September 30, 2022, the Company had cash of $4.06 million, an increase from its cash position of $178,973 at the end of June 30, 2022.
• Total liquidity of $17.08 million, including the remaining balance on the credit facility executed with a related party, LDS Capital LLC, as amended, of approximately $13.02 million.
• During the third quarter of 2022, Bright Green received cash proceeds of $9.1 million from the sales of common stock and warrants, as well as drew and paid down approximately $1.5 million on the LDS Capital LLC line of credit. “This increase was partly offset by the use of funds for the construction in progress, deposits for equipment, and costs associated with regulatory filings,” according to a company press release.

Strategic Highlights for Third Quarter 2022

In August 2022, Bright Green signed a letter of intent with Alterola Biotech Inc., a U.K.-based pharmaceutical company focused on developing cannabinoid and cannabinoid-like medicines and products, to enter into a strategic partnership and for the initial 25% acquisition of Alterola’s issued and outstanding common stock for total consideration of $4 million.

In September 2022, the U.S. DEA completed a site visit and audit of Bright Green’s world-class agricultural facility in Grants, New Mexico, including both completed greenhouses and manufacturing facilities, as well as those currently under construction.

Bright Green entered into a Securities Purchase Agreement with certain institutional and accredited investors in a private placement offering for the sale by the Company of approximately (i) 9.5 million shares of common stock and (ii) warrants to purchase up to an aggregate of 9.5 million shares of common stock.

After the quarter close, the company announced the expansion of its Scientific Advisory Board (“SAB”) with the appointment of five biotech and pharmaceutical industry leaders with the expertise necessary to position the Company for long-term growth.

After the quarter close, Bright Green and LDS Capital LLC, a related party, increased the line of credit by $10.0 million, from $5.0 million to $15.0 million.

“This quarter, Bright Green reached several key operational and strategic milestones validating our plan to become the premier federally authorized provider of cannabis and cannabis-derived products for the pharmaceutical industry," Terry Rafih, the company’s CEO and chairman said.

“Coupled with our strategic partnership and partial acquisition of Alterola Biotech and the expansion of our Scientific Advisory Board with leaders deeply rooted in both the biotech and cannabis industries, we are well-positioned with the right talent, expertise, and facility to capitalize on the growing demand for federally approved cannabis,” Rafih concluded.

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Photo: Courtesy Of Pietro Jeng On Unsplash