Bright Green Corp., which hopes to win federal approval to cultivate marijuana on behalf of researchers, said it struck an agreement with investors to raise $10 million through a private placement of the company’s stock.
According to a news release, the private placement involves the sale of 9,523,810 shares to unidentified institutional investors at $1.05 per share and accompanying warrants.
The private placement is expected to close on Sept. 12, Bright Green said.
Bright Green hopes to join the ranks of marijuana growers that have won approval from the U.S. Drug Enforcement Administration to grow cannabis for DEA-approved research.
The Florida-based company, which has facilities in New Mexico, has been saying it’s won “conditional” DEA approval.
The agency has previously declined to discuss Bright Green’s bid to win approval
There are currently seven DEA-approved growers, and the agency most recently awarded a cultivation license to Florida-based Maridose in August.
At one point, investors bid the company’s stock up from an initial “reference price” of $8 a share to $58 – or a market value of more than $9 billion, based on roughly 158 million outstanding shares.
But the stock has since plummeted and has been trading at less than $2 per share since late July.