Management said the goal is to reduce dependency on foreign pharmaceutical imports.
Bright Green Corp. (Nasdaq: BGXX) announced Monday that it is set to expand its New Mexico-based facility.
The deal, made possible by a $250 million agreement with Dalsem Greenhouse Technologies BV, is expected to extend the company’s capabilities in research, production, and extraction processes in rural Grants, New Mexico.
“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,” the company said in a news release.
It’s been an interesting ride for Bright Green so far. The stock price of the company initially surged to $58 after its May 2022 listing on the Nasdaq but has since fallen and hovered around 20 cents. The news today gave it some early-morning girth, though some stabilization has humbled it back to 31 cents as of press time.
There are also ongoing legal issues, including a lawsuit from a former CEO who accused the company of fraud. Additionally, while Bright Green has suggested a strong partnership with the DEA, the DEA has not confirmed any such agreement.
The latest project, which anticipates adding 7 million square feet of manufacturing space, will be partially funded by a $60 million senior debt financing agreement with an undisclosed lender. The loan, which carries a fixed interest rate, will support the project over a 10-year period, with funds being released in tranches.
Additional financing is expected through the company’s participation in the EB-5 investment visa program.
Lynn Stockwell, Bright Green’s chairwoman, emphasized the project’s environmental and economic benefits, noting the use of solar power and the potential for state and federal tax credits.
“This cutting-edge bespoke greenhouse project incorporates state of the art technology and is designed with a modular approach,” Stockwell said in a statement.
“The number of modules constructed at any given time is contingent upon the capital from our EB-5 investors and other federal infrastructure assistance.”
The initiative has been framed as a response to national security concerns over the reliance on foreign-made pharmaceuticals and aims to make drug costs more manageable for American consumers.
The company said it is currently finalizing negotiations for land acquisition and state permits.
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