In a recent filing with the Securities and Exchange Commission (SEC), Bright Green Corp (NASDAQ:BGXX), a company specializing in medicinal chemicals and botanical products, disclosed amendments to its financial agreements and a notice of potential delisting from the Nasdaq Stock Market.
The company, headquartered in Grants, NM, entered into a secured line of credit with Lynn Stockwell, Chair of the company's board of directors and managing member of LDS Capital LLC.
The updated terms include a new advance of at least $3.5 million, which will secure the obligations under the note with a first lien mortgage on the company's property, among other collateral. The funding has not been provided as of today, and the timeline for this transaction is uncertain.
Additionally, the company has the option to convert the outstanding balance of the note into shares of common stock at $1.15 per share and warrants at $0.13 per warrant, exercisable at $3.00 per share. This conversion rate is at a premium to Bright Green Corp's current trading price on the Nasdaq Capital Market.
In a related development, Bright Green Corp received a delisting determination letter from Nasdaq on Sunday, August 13, 2024, due to non-compliance with the minimum bid price requirement. The company has until Tuesday, August 20, 2024, to appeal this determination. If the appeal is unsuccessful, trading on Nasdaq will be suspended, and the stock will move to the OTC Pink Sheets.
In other recent news, Bright Green Corporation has secured a capital commitment of $3.5 million to facilitate the operational launch of its DEA-reinspected facility in Grants, New Mexico.
The funding, obtained through an amendment to an existing line of credit with investor Lynn Stockwell, includes a conversion feature that allows the lender to convert the principal and interest into common stock. Concurrently, Bright Green is exploring a $15.0 million debt financing option to further its commercial efforts, specifically for the first 20 acres of the company's facility.
In addition, the company has extended the term of previously issued warrants by three years, a financial move aimed at reducing existing liabilities and supporting upcoming operational activities.
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