Bright Green Corporation (BGXX) has seen its stock continue to rise this week after it started trading on NASDAQ on Tuesday 17 May. The company’s stock price increased by a further 91 per cent yesterday.
With an initial reference price of $8 issued by NASDAQ, Bright Green stock opened at $15.99 on Tuesday and shot up 58 per cent by the end of the day, closing at $25.25. Already up 215 per cent from its reference price, the cannabis producer has continued to make gains this week with its stock price rising by a further 91 per cent yesterday.
In a prospectus for the deal released by Bright Green on 13 May, the company said that its registered stockholders planned to sell up to 158,249,000 shares of its common stock.
The company said in the recent prospectus: “No public market for our common stock currently exists, and our shares of common stock have a limited history of trading in private transactions. In 2021, we issued 1,019,000 shares of common stock at a price of $2.00 per share, 188,000 shares of common stock at a price of $3.00 per share and 166,500 shares of common stock at a price of $4.00 per share, in private placements.
“In January 2022, we issued 12,500 shares of common stock at a price of $4.00 per share in a private placement. In May 2022, we issued 300,000 shares of common stock at a price of $10.00 per share in a private placement to two existing stockholders of the Company.”
Bright Green is one of the few companies selected by the US government to legally grow, manufacture and sell cannabis-related products for research, pharmaceutical applications and affiliated export under federal and state laws. As of yet, the Florida-based company has not produced any revenue as it awaits federal legalisation before selling its products.
A direct listing is an alternative route to going public. In the traditional path of initial public offerings, companies sell stock to raise the necessary funds, while a direct listing involves shareholders selling their stock. The company – in this case, Bright Green – will not receive any proceeds from the sale of shares of common stock.