Bright Green Corp., a Florida-based cannabis company, made history last week by being the first “plant-touching” company to list its shares on a major securities exchange within the United States. The company, which boasts of being in possession of conditional approval from the U.S. Drug Enforcement Administration to grow research-grade marijuana, started trading on the NASDAQ exchange under the ticker BGXX on Tuesday last week.
The exchange had earlier set $8 as the reference price for a share of this company, but when trading opened on Tuesday, the stocks started trading at $15.99. In the course of the day, the price climbed up to a maximum price of $36.44 though it eventually ended the day at $25.25. This closing price depicted a 216% increase from the reference price at which a share was set just before trading started.
It should be noted that BGXX was categorized as a direct listing. In such a listing, the current shareholders of a company sell some of their shares, and the company doesn’t receive the proceeds from such a sale of stocks. SEC filings indicate that Bright Green’s shareholders agreed to sell 158.2 million shares.
At the close of the company’s first day of trading, Bright Green had a $4 billion valuation on the basis of the price at which a share closed. This is huge given that Bright Green hasn’t started making sales. The company is constructing a cultivation and processing facility worth $300 million in Grants, New Mexico.
At the moment, the major shareholders in Bright Green are Lynn Stockwell, a director in the company owning 69.6 million shares, and Terry Rafih, also a director who owns a little more than 20 million shares. Edward Robinson, the CEO of the company, currently owns 5 million of the company’s shares while his wife has 605,000 company shares to her name.
Bright Green says it plans to commercialize cannabis products, but only after the U.S. federal government has ended the prohibition of marijuana. This is one of the key positions the company took in order to distinguish itself from other marijuana companies that are operating under state laws. The filings Bright Green made to the Securities and Exchange Commission emphasize this distinction.
For decades, only the University of Mississippi had a facility to grow DEA-approved marijuana for research purposes. That monopoly is being dismantled, and Bright Green is one of the applicants that have been given conditional approval to grow marijuana for research purposes.
The cannabis industry looks forward to the time when domestic companies such as Cannabis Strategic Ventures Inc. (OTC: NUGS) can access the huge amounts of capital available to companies that list on the NASDAQ, NYSE and other securities exchanges in the United States.
NOTE TO INVESTORS: The latest news and updates relating to Cannabis Strategic Ventures Inc. (OTC: NUGS) are available in the company’s newsroom at http://cnw.fm/NUGS
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