DEA-Registered Marijuana Producer's Q3 2023 Financial Report: Reduced Expenses, Strategic Focus, Aligned Net Loss

Author: Joana Scopel | November 22, 2023 06:57pm

Bright Green Corporation (NASDAQ:BGXX) has disclosed its financial results for the third quarter ending September 30, 2023.

Under the leadership of executive chairman Terry Rafih, the company holds a position as one of the entities selected by the U.S. government to legally engage in the cultivation, manufacturing, and sale of cannabis and cannabis-related products for research and pharmaceutical purposes.

"Our registration by the U.S. Drug Enforcement Administration gives us the opportunity to advance our vision of improving quality of life through the opportunities presented by cannabis-derived therapies," according to the company.

Q3 2023 Financial Highlights

• The company reported no revenues for the third quarter, attributable to ongoing construction activities and regulatory procedures.
• Operating expenses for the quarter reduced to approximately $1.8 million, a decline from $5.8 million in Q3 2022, consistent with expectations.
• Bright Green recorded a net loss of approximately $1.9 million during the quarter, aligning with expectations.
• Basic and diluted loss per share stood at $0.01.

Balance Sheet and Capital Allocation

As of September 30, 2023, the company maintained a cash position of $121,724.

Total liquidity, inclusive of the Lynn Stockwell credit facility, reached approximately $15.1 million.

A total of $3.1 million was raised in the first nine months of 2023 through the issuance of common stock and warrants.

Strategic Milestones

"This quarter, Bright Green was focused on several key operational and strategic milestones revolving around searching for and onboarding a new Chief Executive Officer with significant international and cannabis experience and marketing of the EB-5 capital raising program," Rafih said.

• Bright Green made strategic strides in Q3 2023, appointing industry veteran Groovy Singh as CEO, emphasizing talent acquisition, commercial operations and diversification into controlled substances.
• The company successfully executed its EB-5 capital raising program, selling 44,010 shares at $39.99 per share and forming an exclusive partnership with Asia Capital Pioneers Group Inc. for the Asia-Pacific region.

Additionally, Bright Green settled $3.6 million in debt with its largest shareholder, Lynn Stockwell, through unregistered shares and warrants.

The firm also applied for expansion, seeking regulatory approval to include additional controlled substances in compliance with state and federal laws.

• In June 2023, the company announced its inclusion in the broad-market Russell 3000 Index, effective after the U.S. market opened on June 26, 2023.

"We remain committed to making strategic decisions to maximize shareholder value with minimum further dilution, as well as, capitalize on the opportunity to secure the ability to produce controlled substances beyond cannabis," Rafih concluded.

Price Action

As of the latest information available, BGXX shares were observed trading down at 3.10%, reaching $0.2878 per share.

Read Next: How Bright Green Corporation Strives To Set Itself Apart In The Cannabis Industry

Image by Adam Nir On Unsplash

Posted In: BGXX