Bright Green Announces First Quarter 2023 Financial Update and Milestone Progress
24 May 2023 - 10:00PM
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 March 31, 2023.
“This quarter, Bright Green was focused on
several key operational and strategic milestones which have
validated our plans and, ultimately, rewarded our patience. The
commencement of the EB-5 program in February, combined with the DEA
site assessment in March, positions the Company to now move at pace
to establish its operations and secure its position as one of the
largest Medical Cannabis growers, manufacturers and suppliers in
America who are federally authorized,” said Bright Green Chief
Executive Officer, Seamus McAuley. “The Company made the strategic
decision some time ago to focus on ensuring all the foundational
elements were initially achieved and held fast to that decision so
that we might realize the full potential of the opportunity that
lies ahead for the Company and ensuring we maximize the value
opportunity for our shareholders. Q1 2023 saw the fulfilment of our
ambitions, alongside the capital to deliver our plans and having
just enabled a small bridging finance equity raise, we will now
turn our absolute focus to delivering product, revenue and scale as
per our business plan which will, in turn, allow us to
fundamentally establish our position in this marketplace.”
Mr. McAuley continued, “Coupled with our
strategic partnership and acquisition of Alterola Biotech, the
Company are now deeply rooted in both the biotech and cannabis
industries and we are well-positioned with the right talent and
expertise to guide our development, have sufficient Capital to
start our programs and commence manufacturing our products which
have an enormous revenue potential, as well as capitalizing on the
growing demand for federally approved cannabis, and we very much
look forward to sharing further updates on our progress in the
coming months as we move towards realizing the value of our
opportunity and to delivering our plan in 2023.”
Strategic Highlights for First Quarter
2023
- Bright
Green announced the appointment of Chief Operating
Officer (COO) Seamus McAuley as its new Chief Executive Officer
(CEO), succeeding Mr. Terry Rafih, who retained his role of
Executive Chairman of the Board of Directors. Mr. McAuley has held
several global senior leadership positions across the
pharmaceutical, medical device and healthcare industries, including
most recently as the CEO of Alterola.
- The company announced its
plans to raise $500 million utilizing the USCIS EB-5
Program to accelerate its 2023 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 needs for its commercial and
business initiatives.
- The Company disclosed that it
received funds from its first applications under the EB-5 Program,
validating the proof of concept of the EB-5 Program, supporting
working capital requirements to operate its current greenhouse
facilities and setting the stage for the next phase of its
strategic growth plan.
- 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 also received executed
subscription agreements from 37 investors to purchase 814,185
shares of common stock for $32.6 million.
- 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 outlined its
plans to move forward with its acquisition of Alterola, following
the completion of its initial 25% acquisition during the
quarter.
- After the quarter close, 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.
Financial Highlights for First Quarter 2023
- 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 $2.6
million, up from $0.7 million in the same quarter of 2022, in line
with expectations and resulting mainly from payments to support the
continued scaling of Bright Green’s operations, salaries and
ramp-up expenses incurred towards commercialization. Of the $2.6
million in operating expenses, $0.8 million corresponds to
equity-based compensation to officers, contractors, and
professional services providers.
- Net loss of $2.6 million, in line
with expectations.
- Basic and diluted loss per share of
$0.02 for the quarter.
Balance Sheet and Capital
Allocation
- As of March 31, 2023, the Company
had cash of $422,502 million, consistent with it’s cash position of
$414,574 at December 31, 2022.
- Total liquidity of $11.9 million,
including the remaining balance on the credit facility of
approximately $11.5 million.
- During the first quarter of 2023,
Bright Green received cash proceeds of $1.3 million mainly from the
sales of common stock of $12.19 million. This increase was partly
offset by the use of funds for the construction in progress,
equipment, and professional service fees.
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 March 31st, 2023, which can be accessed at:
https://investors.brightgreen.us/news-events/news-releases
About Bright GreenBright Green is one of the
very few companies authorized 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.usMedia
ContactBrightGreen@edelman.com
Investor Relations
ContactBrightGreenIR@edelman.com
Forward-Looking StatementsThis 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 Registration
Statement on Form S-1 filed with the Securities and Exchange
Commission (the “SEC”) on March 29, 2022 and declared effective May
13, 2022, and in the Company’s subsequent Annual Reports on Form
10-K and 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.
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