Marijuana cultivator Bright Green secures $3.5 million private placement

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An institutional investor has agreed to buy more than 3 million shares in Florida-based marijuana cultivation company Bright Green Corp.

The private placement includes 3,684,210 shares of common stock at 95 cents per share and accompanying warrant, yielding roughly $3.5 million for the company after fees and other expenses, according to a news release.

The warrants will be exercisable immediately after they’re issued at 95 cents per share and will expire five years from the issue date.

EF Hutton is “acting as the exclusive placement agent for the offering,” the release noted.

The private placement from an unidentified investor is scheduled to close May 24.

Bright Green, which trades on the Nasdaq as BGXX, was officially added to the U.S. Drug Enforcement Administration’s list of federally licensed cannabis cultivators earlier this month.

The company announced plans earlier this year to raise $500 million through the federal EB-5 Immigrant Investor Program.

Bright Green is raising money to expand its cannabis cultivation and manufacturing facility in New Mexico..