Federally-Licensed Marijuana Grower Posts Quarterly Earnings Report, No Revenues Yet

Bright Green Corporation BGXX, 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 June 30, 2023. The company revealed 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.

“This quarter, Bright Green was focused on several key operational and strategic milestones revolving around the receipt of our license from DEA, further outfitting of the greenhouse, and marketing of the EB-5 capital raising program,” stated Terry Rafih, executive chairman. “We are focused on making strategic decisions and realizing the full potential of the opportunity and maximizing shareholder value with minimum further dilution.”

Q2 Financial Highlights

• Total operating expenses of $3.0 million, down from $19.2 million in the same quarter of 2022, in line with expectations as the second quarter of 2022 includes significant costs associated with the company’s direct listing on NASDAQ. Of the $3.0 million in operating expenses, $1.4 million corresponds to equity-based compensation to officers, contractors, and professional services providers.

• Net loss of $3.0 million, in line with expectations.

• Basic and diluted loss per share of $0.02 for the quarter.

• As of June 30, 2023, the company had cash of $507,445, consistent with its cash position of $414,574 at December 31, 2022.

Q2 Important Milestones

• The DEA completed their on-site audit and assessment of our facilities in March 2022, which culminated in Bright Green being registered as a bulk manufacturer by the DEA and issued our Federal Registration and License Approval on May 01, 2023.

• The company focused on the marketing of its previously announced plans to raise $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.

• To date, Bright Green has sold 44,010 shares of common stock at $39.99 per share, receiving proceeds of $1.76 million.

• The company outlined its plans to move forward with its acquisition of Alterola, following the completion of its initial 25% acquisition during the quarter. The Company is in active discussions with Alterola management.

• Bright Green entered into a Securities Purchase Agreement with an institutional and accredited investor for the sale by the company of (i) 3,684,210 shares of Common Stock and (ii) warrants to purchase up to an aggregate of 3,684,210 shares of Common Stock, in a private placement offering at a purchase price of $0.95 per share and accompanying warrant.

Price Action

Bright Green shares were trading 0.1467% higher at $0.6828 per share at the time of publishing Friday morning.

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Photo: Courtesy of Aphiwat chuangchoem via Pexels