Bright Green Corp., (OTC: BGXX), plans to submit a voluntary petition under Chapter 11 of United States Bankruptcy code in the United States Bankruptcy Court of Southern District of Florida within the next few days.
It has been a turbulent few months for the company, and it failed to meet its big promises.
Bright Green’s CEO Gurinder Singh resigned in December along with the board members Dean Deson Robert Arnone Dean Valore. Saleem Almasri resigned from his position as chief financial officers, and Lynn Stockwell was left to manage the business.
Board departures
Stockwell, the CEO of the company now, announced her intention to restructure it at the time the resignations took place. Her plan involved bringing the complete manufacturing of APIs (active pharmaceutical ingredients) to the United States. This would allow the company to become the supplier and facilitator for all plant-based controlled substance authorized in the United States.
This restructuring included the cancellation of all contracts with existing companies, express or implied. These include land purchase options, employment agreements, board agreements as well as financing agreements.
Bright Green said that it will issue new common stock to existing holders of common stock after a 1-for-50 reverse split, so their dilution is limited to the newly issued Common Stock for creditors. Bright Green will distribute new common stocks to existing common shareholders after a reverse split of 1 for 50, so that the dilution to creditors is only the newly-issued common shares.
Stockwell stated that Bright Green Corp. had a unique opportunity to manufacture, research and produce legal controlled substances under state and federal licensing and registration. The company’s financial situation was compromised because globalization policy was not beneficial for manufacturing, research and production in the United States. The company was unable to obtain investment capital from its EB-5 fund due to the previous immigration policies.
Big plans … again
Drugs Made in America Corp., which will take its new name once the company emerges from bankruptcy. Bright Green plans on generating revenue through “production and supplier contracts, and maintaining its EB-5 Investor Program.”
According to the firm, they will “seek a partner with Health and Human Services and allocate scientific support for the research at the current facility in Grants New Mexico, under a contract and cost plus basis.”
Franchise plans
Bright Green said that it was also exploring the possibility of a business model based on franchises to construct agriculture facilities across Western Texas, Eastern Arizona, and Central New Mexico in stages.
According to the company, “Each of these facilities will feature 15 acres of specialty greenhouses that are built annually until demand meets market requirements.”
It is expected that the company will receive federal loan guarantees for 60 of its new owner/operators who, collectively, will invest $3.5 Billion to strengthen and supply the Drugs Made in America Supply Chain.
Bright Green never delivered
Green Market Report has previously written about Bright Green‘s big promises to investors that it ultimately never delivered upon. The company boasted about being approved to grow marijuana for research under a DEA licence. The company also said it built an enormous growing facility, but was forced to return the majority of equipment because the vendor had not been paid.
It never provided cannabis to researchers and did not report any revenues. The company did manage to pay generous salaries to its executives and took out huge credit cards. Investors kept hearing that the company was expecting harvests, but they never materialized.
In the end, it was taken off the Nasdaq list and traded for about 4 cents on OTC.