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“Bright Green Corporation produces and exports legal cannabis, cannabis extracts, and tetrahydrocannabinol in the United States. Its products are used in research, manufacturing, and export, as well as for the production of medical cannabis products and preparations. The company was incorporated in 2019 and is based in Grants, New Mexico,” according to its profile on Yahoo’s stock ticker page.
The company trades under the symbol BGXX and it has been trading below $0.05 per share.
Unlike many of its rivals in the marijuana space, however, the Chapter 11 filing won’t turn into an asset sale or a liquidation. Bright Green Corporation has a buyer.
Bright Green finds a buyer
Bright Green Corporation has entered into a Restructuring Support Agreement with Lynn Stockwell, a major shareholder of the company, to restructure the company. To implement the terms of the RSA, the company will file, and the plan sponsor will support the company’s “Prepackaged Plan of Reorganization Under Chapter 11 of the Bankruptcy Code for. (the “Plan”),” according to a press release.
Stockwell will become CEO of Bright Green Corporation assuming court approval of the deal.
“The proposed Plan for the Bright Green Corporation, its effective date, generally provides, among other things, for the funding of an Exit Facility by the Plan Sponsor; and the payment in full in cash of all allowed administrative claims and allowed professional fee claims from the proceeds of the Exit Facility,” the company shared.
Bright Green Corporation stock will undergo a 1 for 50 reverse split and unsecured creditors will be paid back in cash (20%) and equity (80%).
Stockwell, the founder of Bright Green Corporation, Drugs Made in America Acquisition Corp I, and Drugs Made in America Acquisition Corp II “seeks to align her vision to on-shore the end-to-end active pharmaceutical ingredient (“API”) manufacturing back to the United States,” according to the press release.
Bright Green is the first publicly traded company in the U.S. that actually touches the cannabis flower.
https://www.thestreet.com/retail/popular-cannabis-brand-declares-chapter-11-bankruptcy
Bright Green Corporation Has Signed Agreement with Majority Shareholder as Plan Sponsor on Prepackaged Plan to Restructure the Company.
The Company plans to emerge with federal loan guarantees for its 60 new mega farm owner/operators, that collectively will invest $3.5 billion to supply and strengthen the Drugs Made in America supply Chain.
FORT LAUDERDALE, FLORIDA, Jan. 27, 2025 (GLOBE NEWSWIRE) — Bright Green Corporation (OTC: BGXX) (“Bright Green” or the “Company”) announced that on January 21, 2025, it has entered into a Restructuring Support Agreement (the “RSA”) with Lynn Stockwell, a major shareholder of the Company (the “Plan Sponsor”) to restructure the Company. To implement the terms of the RSA, the Company will file, and the Plan Sponsor will support the Company’s Prepackaged Plan of Reorganization Under Chapter 11 of the Bankruptcy Code for. (the “Plan”).
Lynn Stockwell, the new Chief Executive Officer and Chairman of the Board of Directors of the Company, also sponsors other corporations that plan to participate in the onboarding of drug production and manufacturing back to the U.S. said, “Simply put, Bright Green Corporation was in an extraordinary unique position to produce, manufacture and research legal controlled substances, under registration and licensing with both state and the federal government. The company was unable to take advantage of the opportunity and was compromised financially when globalization policies were not favorable for research, production and manufacturing within the United States. In addition, the past immigration policy made funding from the company’s EB-5 program for investment capital impossible”.
Lynn Stockwell continues, “I look forward now to this new administration’s promise to onboard the production and manufacturing of both the API and prescription drugs back to the United States creating an opportunity for this well positioned company and importantly rationalizing regulation for drugs made in America. This company will move forward to implement its owner/operator plan for a $3.5 billion investment immediately, that capital is necessary to build new DEA and FDA compliant mega farms for the production facilities to produce controlled substances to supply quality API by contract for the MADE IN AMERICA supply chain. Each owner/operator will have access to federal loan guarantees for the new infrastructure that is expected to create thousands of new jobs and further support this Company’s EB-5 program with investment through legal immigration. The Company will continue its exclusive partnership with Asia Capital Pioneer Group Inc to help support its EB-5 marketing efforts across Asia.”
The proposed Plan for the Bright Green Corporation, its effective date, generally provides, among other things, for (1) the funding of an Exit Facility by the Plan Sponsor; (2) the payment in full in cash of all allowed administrative claims and allowed professional fee claims from the proceeds of the Exit Facility; (3) the roll-up of a secured note held by the Plan Sponsor into the Exit Facility and its repayment pursuant to the terms of the Exit Facility; and (4) the reorganization of the Company by (i) repaying creditors of allowed general unsecured claims in the form of 20% in cash plus 80% in newly issued common stock, (ii) issuing new common stock in the Company to the existing holders of common stock after a 1 for 50 reverse stock split, such that their dilution is limited to the newly issued common stock to the creditors, and (iii) retiring, cancelling, extinguishing and/or discharging the Company’s outstanding warrants and other contracts.
To implement the RSA and the Plan, the Company anticipates filing a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida in the coming days.
The Company expects its operations to continue as normal throughout the contemplated Court-supervised process. Upon emergence, the Company anticipates changing its name to Drugs Made in America Corp. The new management and Board of Directors for Drugs Made in America Corp. will be expected to have the necessary experience to manage controlled substance production and supply contracts for drug manufacturing, the EB-5 program, franchise management SOPs and the drug supply chain.
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