Bright Green expands goals but still hasn’t harvested any DEA cannabis

Bright Green Corp. (Nasdaq: BGXX) recently published a letter from its chief executive officer, Gurvinder Singh, telling investors of its lofty goals and strategy of accepting foreign investor money through an EB-5 program, the employment-based fifth preference visa participants receive.

According to the U.S. Citizenship and Immigration Services, an investor can apply for permanent residence in the U.S. if they make investments in a business that create or preserve 10 full-paying jobs. Bright Green said it already has three Asian applicants and more who intend to complete applications. In addition, Bright Green says it plans to expand the program to other countries.

In addition to the EB-5 program, Bright Green said it has applied to the Drug Enforcement Administration to produce 22 Schedule I and Schedule II controlled substances. The Schedule I drugs include ibogaine, marijuana, psilocybin, peyote, and tetrahydrocannabinol (THC). The Schedule 2 drugs include morphine, opium, oxycodone, poppy straw, and thebaine.

“If these quotas and our registration application are approved, we aim to handle 70% of all marijuana, marijuana extract, and tetrahydrocannabinols production within the DEA’s program,” Singh said in a statement. “We also aim to handle 70% of mescaline (psychedelic plants) production and 50% of psilocybin and psilocyn production taking place within the DEA’s program.”

The CEO also added that he aims to deliver initial production by the end of the first quarter of 2025. The plan is to start with the cannabis offerings and trials for the opium plants if the company receives all necessary approvals in time.

Singh also addressed the potential for cannabis to be rescheduled to a Schedule III drug, which he believes would create more opportunity for Bright Green. The move makes research easier for scientists, which could spark a resurgence in testing and lead to more demand for research materials.

Quarterly earnings

Bright Green recently published its first-quarter earnings results, in which the company said it continues to have no revenue and a deficit of more than $48 million. It reported a negative working capital of $4.6 million and used up $58,552 in cash during the quarter.

The company also reported it had drawn $110,000 from its $15 million related party line of credit. Bright Green said it does not have sufficient working capital to pay its operating expenses for at least 12 months.

Bright Green also stated in its filing that it is still in the initial stages of building its facilities to grow cannabis. It also noted that it received equipment from United Science in March and submitted $1.4 million as partial payment plus an additional $156,155 for shipping and other costs. However, when United wanted its final payment, Bright Green decided to return the equipment. Bright Green then paid United in stock for the unpaid bills.

In addition, the company said in its filing that the DEA Registration is only valid through July 31. However, according to the DEA website, registration automatically renews annually.

Still no harvests

In its 2022 earnings release, Bright Green said that renovation of its greenhouse facility was expected to be completed in the second half of 2022 and that its first harvest was expected in that period as well. That never happened, and there has been no harvest or mention of a harvest since then.

Now the company is back to saying it is still in its initial stages of building.

While it isn’t growing any cannabis as of yet, it continues to handsomely reward its CEOs. The company agreed to pay former CEO Terry Rafah $450,000 in stock, while Singh is being paid more than $35,000 a month, or $420,000 a year. Titan Advisory Services is receiving $25,000 to serve as chief financial officer and to provide compliance work.