GRANTS, NEW MEXICO - Bright Green Corporation (NASDAQ:BGXX) announced today an agreement to expand its New Mexico facility through a $250 million construction project. The expansion, enabled by a partnership with Dalsem Greenhouse Technologies BV, will add 7 million square feet to the company's current research and production capacity. The project is backed by a $60 million senior debt financing agreement, with a 10-year term and fixed interest rate.
The expansion comes after Bright Green received regulatory approvals from the DEA and the State of New Mexico Board of Pharmacy to produce Schedule I and II controlled substances. This move is set to support the company's "Drugs Made in America" initiative, aiming to manufacture generic prescription drugs domestically.
Chairwoman Lynn Stockwell highlighted the project's innovative design, which will be powered by solar energy, and its potential benefits for shareholders due to state and federal tax credits. CEO Groovy Singh expressed optimism about the expansion's impact on reducing national security risks associated with dependency on foreign drug imports.
Funding for the project will also involve capital from the company's EB-5 investment visa opportunity, marketed by Asia Capital Pioneers Group, alongside other federal infrastructure assistance. Bright Green's integrated approach in rural Grants is expected to significantly lower drug costs for the state and the nation.
Bright Green is one of the few entities selected by U.S. authorities for the production and distribution of plant-based drugs for research and pharmaceutical applications, including opium and cannabis-related products.
This expansion is based on a press release statement.
InvestingPro Insights
Amid the announcement of Bright Green Corporation's (NASDAQ:BGXX) ambitious expansion, the company's financial standing and stock performance provide essential context for investors. With a market capitalization of $38.45 million, Bright Green is navigating the challenges of a competitive industry. The company's stock has experienced volatility, with a notable 22.42% return over the last month, showcasing a recent surge in investor confidence. This uptick contrasts with a more extended period of decline, as reflected by a significant 73.37% drop in price total return over the past year.
InvestingPro data indicates a negative adjusted P/E ratio of -4.33 for the last twelve months as of Q3 2023, which suggests that the company has not been profitable during this period. Additionally, the stock's price is currently at 11.55% of its 52-week high, signaling a considerable decrease from its peak value. Despite these challenges, Bright Green's recent regulatory approvals and expansion plans could potentially catalyze a turnaround for the company.
Investors considering Bright Green should be aware of the InvestingPro Tips that highlight the company's weak gross profit margins and the fact that its short-term obligations exceed its liquid assets. These insights could be crucial for assessing the risk associated with the company's expansion strategy. For a comprehensive analysis and more InvestingPro Tips, interested parties can explore the full suite of data available at InvestingPro, which currently lists an additional 6 tips. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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