Bright Green Releases Financial Update, First Cannabis Harvest & DEA Inspection Still Pending

Bright Green Releases Financial Update, First Cannabis Harvest & DEA Inspection Still Pending

Bright Green Corporation BGXX, released its financial results for the quarter ended June 30, 2022.

Q2 2022 Financial Highlights

  • The company recorded no revenues as it is in its initial stages to start building facilities to grow, research and distribute cannabis, pending DEA inspection, registration, and quota approvals.

  • Total operating expenses of $19.18 million, up from $0.43 million in the same quarter of 2021, and up from $0.73 million in the first quarter of 2022, in line with expectations and resulting mainly from payments to support the company’s operations and ramp-up towards commercialization and the successful direct listing of the company’s common stock with the Nasdaq Stock Market.

  • Net loss of $19.18 million.

  • Basic and diluted loss per share of $0.12 for the quarter.

Strategic Highlights for Second Quarter 2022

  • Continued progress on renovation of existing 22-acre greenhouse facility to grow, manufacture and market federally-compliant cannabis, pending DEA registration and quota approvals.

  • DEA inspection of the facility, as well as registration, quota approvals and the company’s first harvest are expected during the second half of 2022.

  • Entered into a partnership agreement with Techson IP, a patent and intellectual property strategy consulting firm, to collaborate on the acquisition and future development of intellectual property across the cannabis industry on behalf of Bright Green.

  • Secured funding from public and private investors to support continued growth and solidify the company’s market-leading position:

    • Completed the company’s direct listing on the Nasdaq Capital Market that resulted in gross proceeds of $3.05 million.

    • Entered into a $5 million credit facility with a pre-existing shareholder.

    • Drew down $2 million from the credit facility during the quarter to support near- and long-term business objectives. Subsequent to June 30, 2022, the company has drawn an additional $1 million from the credit facility.

Balance Sheet and Capital Allocation

  • As of June 30, 2022, the company had cash of $178,973, a decrease from its cash position of $648,176 at the end of March 31, 2022.

  • Total liquidity of $3.2 million, including the remaining balance on the credit facility.

  • During the second quarter of 2022, Bright Green received cash proceeds for $3.05 million from the sale of common stock in May 2022, $2 million from the aforementioned line of credit and deployed $2.6 million for capital expenditures and growth investments.

“This quarter has shown that Bright Green is uniquely positioned to capitalize on a growing market opportunity and deliver on our near and long-term goals as we scale our business,” stated Terry Rafih, Bright Green’s interim CEO and chairman of the board. "In May, we completed a direct listing of our common stock on Nasdaq – a milestone that has provided us access to the public capital markets and strengthened our profile as a player in the cannabis industry.”

Rafih continued, “Since our direct listing, we have made significant progress developing our world-class agricultural facility in Grants, New Mexico. These advancements, as well as relationships with key strategic partners like Techson IP, will help us meet growing demand from potential pharmaceutical and research partners. We look forward to sharing additional updates on our progress over the coming months.”

Photo by Richard T on Unsplash

 

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