Marijuana cultivator Bright Green to file for bankruptcy protection

Marijuana cultivator Bright Green Corp.plans to file for Chapter 11 bankruptcy reorganization after reaching an agreement with major shareholder Lynn Stockwell, who will become the company’s new CEO and chair.

According to a news release, the Florida-based company expects to emerge from bankruptcy protection with federal loan guarantees for its 60 new mega farm owners/operators who will collectively invest $3.5 billion to supply and strengthen the business’ supply chain. ADVERTISEMENT Bright Green’s proposed restructuring plan includes repaying creditors 20% in cash and 80% in newly issued common stock and implementing a 1-for-50 reverse stock split for existing shareholders, the release noted.

Bright Green made historic Nasdaq debut The restructuring plan comes after shares of Bright Green – the first plant-touching cannabis business to trade on a major U.S.stock exchange – were suspended from trading on the Nasdaq in September.

The company also said in its release that it plans to change its name to Drugs Made in America Corp.and focus on mega farms that are compliant with U.S.

Drug Enforcement Administration and Food and Drug Administration regulations for controlled substance production.Bright Green is among eight companies to be registered by the DEA as federally licensed cannabis cultivators and product manufacturers.

The company said in 2023 it had raised $3.5 million in a private placement to expand its cannabis cultivation and manufacturing facility in Grants, New Mexico.Previous funding plan became ‘impossible’ Despite “registration and licensing with both state and the federal government,” Stockwell said in a statement, Bright Green “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 fu...