In what may be one of the strangest items today, cannabis company Bright Green (NASDAQ:BGXX) drew a lot of investor support with a plan to wrangle a hefty new investment. The key to that investment? A government program that could potentially pull in half a billion dollars worth of green for Bright Green.
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Bright Green’s share price more than doubled as it announced plans to raise $500 million through the EB-5 capital program. EB-5, part of the U.S. Citizenship and Immigration Services Department, allows investors to apply for a permanent residence visa. All those applicants need to do is put an investment in a commercial enterprise in the U.S., one that either creates or preserves, at least 10 jobs for qualified workers in the U.S.
Bright Green, in turn, will issue new shares of common stock valued at $39.99 per share through the program. That represents a premium of roughly 26 times current share prices. It plans to use the proceeds of that funding round to build several new facilities for both production and manufacturing. It also intends to engage in research and clinical trials. Such efforts could prove helpful. Bright Green currently has conditional authorization to produce and sell cannabis, and it may be able to extend that line with new facilities.
The last five days of trading for Bright Green show a stock trading in an almost straight line at $0.50 per share. Today’s news hit and sent the stock bounding upward. Though the stock gave some of those gains back over the course of Wednesday trading, it’s still close to three times what it was even yesterday.
