How Bright Green Corporation Strives To Set Itself Apart In The Cannabis Industry

Executive Chairman Terry Rafih highlights the unique position of the company and how it will disrupt the existing operators as BGXX now moves to the starting gate. The company claims this position with no long-term debt, undervalued assets on the balance sheet, owns a state of the art growing and manufacturing facility located in the best growing climate and is raising capital for research, growth and working capital. BGXX intends to generate profitable revenues on several fronts in this emerging market. BGXX claims to be a mover in this space that can meet investors’ high expectations for growth, revenue, and profits and can now concentrate on future opportunities. 

Bright Green Corporation (“Bright Green”) BGXX aims to improve people’s lives by developing new medicines and other legal products using cannabis extracts and derivatives. The company’s focus includes addressing significant medical and health conditions such as women’s health concerns and alternatives to opioids as primary solutions for pain management. 

Bright Green reports that it is legally compliant, has well managed its debt, and believes it is now well positioned to realize its business plan without excess borrowing, minimum share dilution and unique access to the markets with a reasonable cost of products that can be delivered directly to the consumer.

The company reports the ability to scale, and says it is not limited to a share of the estimated $13 billion dollar business on the medical side but also generating revenue from all fully legal sectors. Bright Green believes that it has just reached the starting line and is well positioned to create shareholder value with predictability not available to operators that are state legal but not federally legal. The company is confident that the markets are there for medical cannabis and cannabis based medicines and other legal products and plans to achieve its well-planned goals. The company is also best situated to disrupt the illicit market as well as all illegal operators. The company insists that it will create shareholder value, and will be able to scale and operate a pharmaceutical business leading this space as the real first mover. With its Drug Enforcement Administration (“DEA”) registration and compliance with all associated licenses and agreements, the company can start generating revenue. The company says it plans to create medicines and plans to deliver those medicines to people with prescriptions via the U.S mail, courier, or similar modes directly to the patient, and coverage by patients’ insurance companies. Bright Green (“BGC”) believes that it is the first and currently only company with this plan and in a legal position to execute on the plan to disrupt the industry.

BGC asserts that it is positioned to have the ability to work directly with federal agencies as necessary, including the DEA, and the Food and Drug Administration (“FDA”), to establish a high quality medical/pharmaceutical company and over 171 universities for potentialresearch collaboration. The company is well managed by its Chairman Mr. Terry Rafih who oversees the plan for qualified experts to run the business, including creating pharmaceutical medications and a federally authorized distribution system that can fill and deliver a prescription at low or no to the person with a qualified prescription.

The company’s vision is to become the largest cannabinoid pharmaceutical development company in the world. Founded in 2019 by Lynn Stockwell, and listed on the Nasdaq in May 2022, Bright Green is building the capacity to deliver new medicines, new science, new jobs and leading the way to building a new Cannabinoid pharmaceutical industry. Working with agencies such as the DEA and the FDA and the State of New Mexico, the company says that it aims to deliver: 

• New medicines to treat diseases that burden both patients and the wider healthcare system
• High caliber science to influence and inform policy decisions
• Significant economic impact to the state of New Mexico
• A modern, carbon neutral world leading production facility with a huge output capacity; powered by renewable energy and environmentally friendly operations – BGXX is in the process of completing its first 22-acre production facility and plans to construct a state-of-the-art agricultural manufacturing and research facility yielding a further 114 acres providing a huge scope and scale and solutions to deal directly with insurance companies for the patients’ medical coverage.

The Grants New Mexico facility, which was acquired through merger in 2019, is anticipated to create more than 3,000 direct and indirect jobs. The facility would be the nation’s largest federally authorized facility for plant-based therapies, supplying both the United States and international markets with high-quality cannabis, extracts, and derivatives along with exact formula additives to recognized national brands. 

In 2015, Ms. Stockwell set out to build both a state and federally legal medical business that includes medicines made from cannabis and other medicinal plants. Today, Ms. Stockwell remains a director of Bright Green, a sponsor of biomedical research and clinical trials, and a member of the Association of Healthcare Philanthropy. Ms. Stockwell is passionate about many women’s health issues including plant-based bioidentical hormone replacement using cannabis plant derivatives and continues to support the Bright Green management team.

The company listed on the Nasdaq in May 2022 and is now operated by a working Board of Directors under the expertise of Mr. Terry Rafih the Executive Chairman, Mr. Rafih along with his family, controls a large interest in Bright Green along with his 70 other companies. 

“As Bright Green now starts its unique legal journey to contracts and revenue, the company will implement well qualified people for ISO operations, new medical development, and distribution to guide the profitability.” Terry Rafih said. 

The company’s mission has been clear from the start and was designed differently, with a focus on full legal compliance. This is vital in any business, unlike other federally illegal state or multistate operators that are growing and selling marijuana while attempting to comply with state laws that do not consistently align with the expectations for a successful enterprise. These operators are the result of the unproven first movers, which generally is a good position, but not with cannabis stymied by federal illegality. Many state legal, but federally illegal, operators now face insolvency, but no access to federal bankruptcy courts. Terry Rafih also points out that until now the company could not have revenue and maintain federal compliance, as producing only under state laws would have disqualified the company from achieving their unique status as the fully compliant operator.

The capital markets can tend to be unfriendly to an industry with so many operators that desperately need capital for debt servicing and expenses that exceed revenues, the company says. Many of those companies’ growing locations are not ideal, often located because of state laws where growing conditions do not produce quality plants at reasonable costs. These conditions, along with banking, tax and other issues, have made it difficult for the state operators to run a successful, profitable business.

Through work with the DEA and building on registration for the manufacture of cannabis and derivatives at unprecedented scale, BGC possesses a significant competitive advantage over existing U.S. cannabis growers, having been registered with the DEA to manufacture, and sell legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export. 

As a DEA registered bulk manufacturer, BGC is able to ship cannabis across state lines and internationally to researchers who hold the requisite regional approvals. The company reports having a significant IP portfolio, is licensed as a researcher and plans to develop new medicines through the recognized FDA pathways.

BGXX has an exciting and novel capital raising capability through its EB-5 program, which could deliver over $500 million in capital to allow us to execute ambitious plans with virtually no dilution to our shareholders and founders. The Governor of New Mexico, Michelle Lujan Grisham, said, “I congratulate the Bright Green team on the launch of its EB-5 program. President Biden has re-authorized the EB-5 program, which is now an advantage for projects in rural America. This federal initiative signals the opportunity for the creation of a significant number of new jobs in New Mexico and across the United States, which is very welcome news. I am delighted to share this announcement with the Bright Green team today.”  Governor Lujan continued, “Bright Green’s plans to develop facilities using only renewable energy further fosters both the State of New Mexico and the Federal view of the benefits of clean air and clean energy. This adds to the types of companies and their technologies we look for to make New Mexico a great place to live and do business, bringing new ideas with sustainable employment opportunities.”

BGC has submitted its I-956F application and is waiting for final approval from the USCIS that will facilitate the issuance of 573 EB-5 investor visas. The company has the proof of concept for the program with test investors and can now track the new timelines of the qualified rural program. The capital generated by the EB-5 program will be used to fund, research, and construct phase 2 of Bright Green’s greenhouse facilities in New Mexico which will deliver a truly world class facility as well as provide working capital to the company and allow it to conduct research and development of its own IP assets and programs. BGC, through its partnership with regional center EB5AN, will raise the capital by selling Private Placements of $880,000 each to qualified EB-5 investors at $39.99 for 22,005 restricted shares. This share price ensures that the EB-5 investor’s capital is “at risk” and conforms to the new program. After the waiting period is over, the company will register the investor shares for resale and the investor can sell the interest and reap a profit depending on the share price or may sell at a loss once the visa for permanent residence has been issued by USCIS.

Dentons US LLP drafted the EB-5 offering documents. The company believes that Dentons’ global reach will help the company achieve its goals. Executive Chairman, Terry Rafih highlights the future of the Bright Green Corporation and the unique starting position of the company.

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This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.