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Bright Green Corporation (NASDAQ:BGXX) ("Bright Green" or the "Company") today announced that it has signed an agreement with Dalsem Greenhouse Technologies BV for a $250 million construction project to expand the Company's current research, production and extraction processing facility located in rural Grants, New Mexico (the "Dalsem Agreement"). The proposed expansion will add 7 million square feet of manufacturing and production capabilities. The Dalsem Agreement provides that Dalsem will construct the additional facility to its specifications and build them in a modular fashion.
Additionally, the Company has entered into a credit agreement with a lender for a $60 million senior debt financing to fund the expansion construction project (the "Credit Agreement"). The Credit Agreement has a term of 10 years with a fixed interest rate and will have a $5 million tranched draw schedule with up to 12 draw requests over the 10 year term. The remainder of the funds are expected to be sourced from the Company's EB-5 investment visa oppertunity, currently being marketed by Asia Capital Pioneers Group.
This expansion is a direct result of Bright Green obtaining the regulatory approvals for the production of Schedule I and II controlled substances from the DEA and the State of New Mexico Board of Pharmacy. The expansion will facilitate the production and manufacturing required to process the active pharmaceutical ingredients ("API") and to make generic prescription drugs, supporting Bright Green's "Drugs Made in America" initiative.
Lynn Stockwell, Bright Green's Chairwoman said "This cutting-edge bespoke greenhouse project incorporates state of the art technology and is designed with a modular approach. The number of modules constructed at any given time is contingent upon the capital from our EB-5 investors and other federal infrastructure assistance. I am also pleased to confirm that this project will be powered by energy from solar panels with the components soon to be produced here in Albuquerque. Ms. Stockwell continues "shareholders will benefit from a producer/manufacturer with a solar power generation field as the state and federal tax credits are unprecedented allowing our rural based company significant advantages over foreign competition resulting in a low-cost generic drug manufacturing company and importantly, leaving a carbon neutral footprint."
CEO Groovy Singh expressed his optimism for the impact the expansion will have for its "Drugs Made In America" plan. Mr, Singh shared that "Bright Green is the first company in almost a century to receive approval to produce these controlled substances in the U.S., so this is a new concept for the U.S. pharmaceutical industry. The opportunity to mitigate the national security risk associated with dependency on foreign imports—manufactured in countries that may have different ideologies and quality standards that practiced by U.S companies—is to substantial to ignore."
The company is finalizing negotiations for the necessary services from the city, landowners' land parcels and the necessary state permitting for the construction and occupancy.
The company believes the fully integrated approach in rural Grants, New Mexico will substantially reduce the costs of drugs to both the state and all Americans.
Posted In: BGXX
