CEO: The deal paves way for a “major advancement in plant-based drug development”
Bright Green Corporation (NASDAQ: BGXX) announced today that it has entered into an agreement to acquire assets from Wyoming-based cannabis tech firm, C2 Wellness Corporation.
The transaction is an asset-for-stock deal, where Bright Green will issue 5 million shares of its common stock to C2 Wellness shareholders.
The assets include a range of novel cannabinoid molecules, prodrugs, and proprietary formulations, along with the associated intellectual property rights. The assets also include patents for new delivery methods and nano-encapsulation technologies.
As part of the acquisition, the scientific team of C2 Wellness, along with their academic and research collaborations, will be integrated into Bright Green. That’s expected to boost the company’s R&D progress in plant-based drug development, management says. The deal has received approval from the boards of both companies.
“This groundbreaking collaboration involves the acquisition of innovative CBD and THC-based molecules from C2 Wellness Corp.,” said Bright Green founder Lynn Stockwell.
Dr. Emmanuel Dumont, a top advisor to C2 Wellness and a professor at Georgetown University, said the partnership is focused on making better versions of CBD and THC, the main ingredients in cannabis.
“Our focus is on developing products that offer improved safety and efficacy over current CBD and THC-based medicines (such as) Epidiolex and Sativex, aiming for superior patient outcomes with an addressable market of nearly $756 million,” Dumont said in a statement.
The deal also supports the ‘Drugs Made in America’ initiative. The new cannabis ingredients will be made at Bright Green’s facility in Grants, New Mexico, with research happening in Albuquerque. The company plans to use advanced technology like artificial intelligence in its research.
Groovy Singh, CEO of Bright Green, said that the acquisition is in line with the firm’s 2024 goals.
“Our collaboration with C2 and its scientific team strongly demonstrates our commitment to scientific research and innovation while simultaneously bolstering the management team,” Singh said.
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