Continued investment to support long-term strategy and pathway for growth, including plans to fully acquire Alterola Biotech, appointment of Seamus McAuley as Chief Executive Officer and expansion of Scientific Advisory Board
Recently announced capital raise plan of $500+ million utilizing the U.S. Citizen & Immigration Services EB-5 program, alongside the recently announced full acquisition of Alterola Biotech, showcases the Company’s significant progress against its strategic plan
Company preparing for federal registration from U.S. Drug Enforcement Administration as bulk cannabis manufacturer, which will position Bright Green to become the largest, fully integrated operation for marijuana cultivation in the U.S. for research, medical and pharmaceutical applications and affiliated import and export
GRANTS, N.M., April 18, 2023 (GLOBE NEWSWIRE) -- Bright Green Corporation (Nasdaq: BGXX) (“Bright Green” or “the Company”), one of the very 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 import and export, today reported financial results for the fourth quarter and fiscal year ended December 31, 2022.
Bright Green Chief Executive Officer (CEO) Seamus McAuley said, “During and following the fourth quarter, Bright Green achieved several critical milestones that significantly advanced our progress against our strategic plan. This includes the announcement of our intent to fully acquire Alterola Biotech – allowing us to leverage their pharmaceutical expertise as we prepare for operations – the expansion of our Scientific Advisory Board with leaders deeply experienced in developing cannabinoid and cannabinoid-like medicines, and plans to raise $500 million in capital utilizing the USCIS EB-5 Program, with initial funds already received.”
Mr. McAuley added, “We now await and anticipate final registration of our federal license to be a bulk cannabis manufacturer from the U.S. Drug Enforcement Administration (DEA). Upon receiving the license to commence cultivation, Bright Green will be prepared to deliver products to be used in innovative medical treatments for patients globally. We look forward to sharing additional updates on our progress over the coming weeks and months as we execute and seek to realize our strategic vision: having Bright Green be the largest global cannabinoid pharmaceutical and medical development company.”
Strategic Highlights During and Following Fourth Quarter 2022
- In October 2022, Bright Green announced the expansion of its Scientific Advisory Board (“SAB”) with a group of industry leaders, chaired by Colin Stott, chief operating officer at Alterola Biotech, Inc. (“Alterola”) (OTC PINK: ABTI), a U.K.-based pharmaceutical company focused on developing cannabinoid and cannabinoid-like medicines and products, to work with the Company’s senior management to advance its long-term business growth and position it for future success.
- After quarter end, Bright Green:
- 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.
- 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 outlined its plans to move forward with its acquisition of Alterola, following the completion of its initial 25% acquisition during the quarter.
- The strategic partnership enables Bright Green to leverage Alterola’s extensive sector experience and pharmaceutical assets to help it more efficiently scale operations and harness the therapeutic benefits of Alterola’s cannabinoid and cannabinoid-like medicines.
- The recently announced merger of Alterola into Bright Green, delivers a pipeline of targeted pharmaceutical candidates, which is expected to progress through the relevant U.S. Food & Drug Administration pathways, and enables development of products for application in various clinical settings, delivering significant value to the Company and shareholders.
- As Bright Green prepares to enter its next phase to become operational and produce revenues, expansion of the team to build out capabilities becomes a priority for the Company’s leadership.
- 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.
Financial Highlights for 2022
- Bright Green recorded no revenues for the quarter, as it continued to build facilities to grow, research and distribute cannabis, pending DEA final inspection, registration, and quota approvals.
- Total operating expenses were $27.3 million during the 12-month period ended on December 31, 2022, up from $2.5 million in 2021, in line with expectations and resulting mainly from Bright Green’s corporate activities, including professional fees paid in relation to the Company’s direct listing on NASDAQ in May and private investment in public equity capital raise in September, salaries and equity compensation, and ramp-up expenses incurred towards commercialization. Of the $27.3 million in operating expenses, $18.8 million correspond to equity-based compensation to officers, contractors, and professional services providers.
- Bright Green’s capital expenditures in 2022 was $10.5 million, primarily used for the build out of the Company’s Grants, New Mexico greenhouse.
- The Company acquired a 25% equity position in Alterola for $4.3 million, including direct closing costs. At the end of 2022 Bright Green has a liability of $1.7 million due to the sellers.
- Net loss of $27.7 million, in line with expectations.
- Basic and diluted loss per share of $0.17 for the quarter.
Balance Sheet and Capital Allocation
- As of December 31, 2022, the Company had cash of $414,574, a decline from $1,282,565 at the end of December 31, 2021.
- Total liquidity of $11.7 million, including the remaining balance on the credit facility executed with a related party, LDS Capital, LLC (Lynn Stockwell), as amended, of approximately $11.3 million.
- During 2022, Bright Green received cash proceeds of $12.2 million from the sales of common stock and warrants, as well as and paid down approximately $3.6 million on the LDS Capital, LLC line of credit. The cash proceeds were used primarily for the construction of our greenhouse, deposits for equipment, and costs associated with regulatory filings.
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-K for the quarter and fiscal year ended December 31, 2022, which can be accessed at: https://investors.brightgreen.us/news-events/news-releases
About Bright Green
Bright Green is one of the very few companies eligible for authorization 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.us.
Cautionary Note Regarding Forward-Looking Statements
This 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.
Media Contact
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