GRANTS, NM - Bright Green Corporation (NASDAQ:BGXX), a pharmaceutical company, has announced that it has received final approval from the New Mexico Board of Pharmacy and the Drug Enforcement Administration (DEA) to register and license Schedule I and II plant-based drugs and Active Pharmaceutical Ingredients (APIs) for research, production, and manufacturing purposes.
The licensure includes substances such as psilocybin, mescaline, peyote, ibogaine, opium, and various opium derivatives, with the potential addition of erythroxylon coca (cocaine) pending approval. This development marks a significant regulatory milestone for Bright Green, following its DEA registration for cannabis, and positions the company to delve into the controlled substances space.
Bright Green aims to address the U.S. supply chain shortage for plant-based medicines and establish itself as a leader in the domestic market, which is currently reliant on imports. The company's research will be conducted by its C2 team in Albuquerque, with production and manufacturing set to take place at its facility in Grants, New Mexico. Their climate-controlled glass greenhouses are designed to produce medical plants with quality and predictability, which may lead to guaranteed supply contracts with federal entities and other pharmaceutical companies.
With this approval, Bright Green anticipates becoming the first company in nearly a century to produce, manufacture, and supply API for Schedule I and II controlled substances in the United States. CEO Groovy Singh has stated that the company's expansion will leverage capital from an exclusive EB-5 partnership with Asia Capital Pioneers Group, as well as federal agency funding. The modular design of their facilities is intended to scale with demand and create jobs in correlation with EB-5 capital availability.
Bright Green is one of the few companies federally authorized to legally grow, manufacture, and sell cannabis and related products for research and pharmaceutical applications. The company views this approval as a step forward in advancing its vision of improving quality of life through cannabis-derived therapies.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. The company's actual results could differ materially from those projected due to various factors, including the ability to raise funds and the impact of new approvals. Further information on these risks can be found in the company's SEC filings.
InvestingPro Insights
Bright Green Corporation (NASDAQ:BGXX) has reached a pivotal moment with the recent approval to register and license Schedule I and II plant-based drugs, yet the financial health of the company presents a nuanced picture. According to InvestingPro's real-time data, Bright Green's market capitalization stands at a modest $34.94M. The company's performance metrics indicate challenges, with a negative P/E ratio of -3.09, reflecting its current lack of profitability. This is further underscored by an adjusted P/E ratio for the last twelve months as of Q3 2023 at -3.65.
The company's stock has experienced a significant return over the last week, with a 7.95% increase in price total return. However, this short-term uptick contrasts with longer-term performance, as the stock has witnessed a steep decline of -77.43% over the last year. Additionally, Bright Green does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
An InvestingPro Tip points out that Bright Green is quickly burning through cash, which may raise concerns about its sustainability and ability to fund ongoing operations and research. Furthermore, the company suffers from weak gross profit margins, which could impact its ability to turn its regulatory approvals into profitable ventures.
For investors interested in a deeper dive into Bright Green's financials and future prospects, there are additional InvestingPro Tips available. These include insights on the company's short-term obligations exceeding its liquid assets and the fact that the stock has fared poorly over the last month, six months, and even the last five years. To access these valuable insights, visit https://www.investing.com/pro/BGXX and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more tips listed in InvestingPro, investors can gain a comprehensive understanding of Bright Green's financial position and make informed decisions.
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