Bright Green Corporation BGXX has entered into a securities purchase agreement with a single institutional investor to purchase up to 3.7 million shares of common stock and warrants, at a purchase price of $0.95 per share and accompanying warrant. The gross proceeds to the company from the private placement are expected to be approximately $3.5 million before deducting the placement agent's fees and other estimated offering expenses.
The warrants will be immediately exercisable from the date of issuance at an initial exercise price of $0.95 per share, subject to adjustments as set forth therein, and will expire five years from the date of issuance. The closing of the private placement is expected to occur on May 24, 2023, subject to the satisfaction of certain customary closing conditions set forth in the securities purchase agreement.
EF Hutton, division of Benchmark Investments, LLC, is acting as the exclusive placement agent for the offering.
The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the company has agreed to file one or more registration statements with the Securities and Exchange Commission covering the resale of the shares of common stock and the shares issuable upon exercise of the warrants.
Photo: Benzinga edit with photo by Kindel Media on Pexels
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