Bright Green Corporation (NASDAQ: BGXX) stock surged over 45% on Tuesday after the company announced plans to expand a New Mexico facility with a $250 million project.
Bright Green (BGXX) has entered into a landmark agreement with Dalsem Greenhouse Technologies BV for a $250 million construction endeavor to expand its current research, production, and extraction processing facility in rural Grants, New Mexico. The planned expansion will incorporate an additional 7 million square feet of manufacturing and production capacity. The project has secured a senior debt financing agreement worth $60 million, featuring a fixed interest rate and a 10-year term.
This move follows Bright Green’s recent triumph in securing regulatory green lights from the DEA and the State of New Mexico Board of Pharmacy, allowing the production of Schedule I and II controlled substances. This pivotal development aligns with the company’s “Drugs Made in America” initiative to bolster domestic manufacturing of generic prescription drugs.
Chairwoman Lynn Stockwell underscored the innovative project’s design, slated to run on solar energy and its potential advantages for shareholders through state and federal tax credits. CEO Groovy Singh conveyed optimism regarding the expansion’s ability to mitigate national security risks tied to reliance on foreign drug imports.
The funding landscape for this endeavor is multifaceted, with capital infusion from Bright Green’s EB-5 investment visa program, promoted by Asia Capital Pioneers Group, alongside other federal infrastructure support. The company’s holistic approach to rural Grants will usher in a new era of affordability, significantly slashing drug costs for the state and the nation.
Bright Green is one of the select few entities tapped by U.S. authorities for the production and distribution of plant-based drugs, including opium and cannabis-derived products, for research and pharmaceutical purposes.
Bright Green (NASDAQ: BGXX) Stock Reaction
BGXX stock soared 45.72% to close at $0.30 on Tuesday. The traders had exchanged hands with 67,197,399 (67.19 million) shares compared to the average daily trading volume of 732.54K.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
