Grants-based Bright Green Corp. shares suspended from Nasdaq trading

New Mexico-based Bright Green Corp., the company behind a proposed multimillion-dollar cannabis research facility in Grants, had the trading of its shares immobilized from the Nasdaq Stock Market this month.

The suspension by Nasdaq comes following a canceled Sept. 26 delist appeal hearing, the company said in a Sept. 19 news release. Bright Green officials said while trading of its shares are halted, it “remains committed to pursuing its strategic goals and delivering value to its shareholders.”

A shareholders meeting is scheduled for Nov. 15, where the company will discuss the potential for a “reverse stock split aimed at enhancing shareholder value.” Bright Green said it will additionally explore other “strategic alternatives to unlock long-term value."

“We continue to focus on achieving licensing approvals and on our vision of enhancing national security interests by growing and producing Schedule I and II plant-based medicines,” said Groovy Singh, the company’s CEO. “We are evaluating all options available to us, including strategic partnerships and acquisitions, as we continue to build on our foundation and explore opportunities for sustainable financing and growth.”

The company didn't respond to inquiries from the Journal.

For Bright Green, which won approval from the U.S. Drug Enforcement Administration to grow and manufacture cannabis products, the news comes as it has failed to rack up revenue since it announced its plans more than three years ago for a massive cannabis research facility in the northwestern part of the state. It isn’t clear what stage the buildout of the Grants facility is in.

According to Green Market Report, an outlet covering the cannabis industry, Bright Green’s first quarter earnings from this year showed no earned revenue and a deficit of more than $48 million.

Green Market Report also found that Bright Green had a negative working capital of $4.6 million, noting the company also “does not have sufficient working capital to pay its operating expenses for at least 12 months.”

Having the trading of its shares halted is a big blow for the company, which shows investors the frailty of Bright Green’s operations and expansion. Listed in May 2022, just a year after announcing its expansion plans in the state, Bright Green’s BGXX listing opened at $15.99 a share. The company closed at 15 cents a share before the suspension.

Announced in May 2021, Bright Green was planning to spend $300 million on the Grants facility and create hundreds of jobs — which caught the attention of Gov. Michelle Lujan Grisham, who called the company an “exciting partner.”

It has, in the years since, partnered with different companies and has worked to gain DEA approval for the facility, which would allow the company to grow and manufacture cannabis for use by researchers across the globe.

Bright Green also has announced a EB-5 capital raise program, which allows “investors, their spouses and unmarried children under 21 years of age” to apply for a green card if they make a capital investment into a company.

The company’s board chair, Lynn Stockwell, said in the Sept. 19 news release that the company has a $2.5 million line of credit “to ensure the company has the necessary financial resources to support” Bright Green’s ongoing operations.

“This financing provides the company with the flexibility to navigate the challenges ahead and continue to invest in opportunities that will drive long-term growth,” she said. “The board and management team remain fully aligned in our efforts to create value for our shareholders as we explore potential strategic alternatives.”