Business
Marijuana grower Bright Green tumbles to Earth after initial Nasdaq stock surge
Bright Green Corp. made history last month as the first plant-touching marijuana business to trade on a major U.S. stock exchange, and its market value soared as a result – to $9 billion at one point.
But the Florida-based company’s shares have since plunged on the Nasdaq, from nearly $60 to the low single digits.
What happened – beyond the stock market’s current swoon?
Investors were clearly swept up by the idea of a federally legal marijuana business that appears on the verge of winning approval from the U.S. Drug Enforcement Administration to grow and process cannabis for medical research.
Also, Bright Green hopes to sell cannabis products on the commercial markets, provided the federal government legalizes marijuana.
However, what many investors appear to have missed were warnings in Bright Green’s regulatory and financial filings.
Those warnings underscore that the fledgling company still has significant hurdles to clear, including:
- Final DEA approval to cultivate cannabis for scientific researchers.
- The challenge of raising hundreds of millions of dollars of capital to construct a state-of-the-art medical cannabis research, cultivation and production facility in a small New Mexico town.
- The viability of a business hinging on medical cannabis research. Bright Green has yet to make a sale. Also, it spent less than $1 million in the first three months of 2022 on developing its planned $300 million facility in Grants, about 80 miles west of Albuquerque.
“We can provide no assurance that we will generate sufficient revenues from our intended business operations to sustain a viable business operation,” Bright Green warned in its filings.
“In order to generate revenues, we must first receive receipt of final registration from the DEA.”
The federal agency has previously declined to discuss Bright Green’s bid to win approval, noting it is “unable to comment on the status of an entity’s application.”
Bright Green also said its planned operations are contingent on “raising significant additional funding for the construction of certain facilities in Grants, New Mexico.”
Stock skyrockets
Bright Green debuted May 17 on the Nasdaq national market under the ticker symbol BGXX.
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.
By comparison, the country’s largest marijuana multistate operators – Massachusetts-based Curaleaf Holdings and Florida-based Trulieve Cannabis – had market values of $3.8 billion and $2.5 billion, respectively, as of Tuesday.
Each MSO expects to generate at least $1.3 billion in revenue this year.
In the case of Bright Green, the company’s high-flying performance has proved to be temporary, at least for now.
After the initial surge, the stock ultimately plunged to less than $3 a share. It closed at $2.67 on Tuesday.
But that’s still equivalent to a market value of $425 million for a company that says it has conditional approval – in the form of a “memorandum of understanding” – from the DEA to grow, store, package and distribute federally legal cannabis across state lines for medical research.
“Maybe there is a business there, but it’s not a consumer-driven cannabis business,” said Mike Regan, founder of Denver-based cannabis investment research company MJResearchCo.
Regan noted that it’s a very different business model than an MSO that is generating hundreds of millions of dollars in sales annually to consumers.
And he questioned the current $400 million market value.
“That’s a significant valuation for a pre-revenue investment that needs to raise a lot more capital to serve an unproven market,” Regan said.
Bright Green did not respond to MJBizDaily requests for an interview.
Viable business model?
Sue Sisley, head of the Scottsdale Research Institute – which is among the six current DEA cannabis cultivation registrants – asserted that business models based on a DEA registration face steep barriers to success.
“The entities who are trying to build a business model around these few research registrations may never be successful. The demand for research cannabis is minimal, and you will never be able to retail this cannabis out the door like a state-licensed dispensary,” Sisley told MJBizDaily via email.
“This is not a lucrative business model and never will be. It takes eight to 10 years to develop drugs that eventually get FDA approval (assuming all the trials have positive outcomes which is very difficult given high placebo response rates in studies on pain, anxiety, PTSD etc.) – and is massively more complicated when it comes to agricultural products that have complex chemical composition with tons of different bioactive molecules.”
Direct listing versus IPO
Bright Green employed what is called a direct listing to become publicly traded.
With a direct listing, a company doesn’t issue new shares or raise fresh capital, as in an initial public offering. Instead, it sells its existing, private shares.
The process is less expensive. The company doesn’t need to hire an investment bank to promote or underwrite the deal.
Becoming publicly traded this way also involves fewer regulatory hurdles.
But investors must rely on their own due diligence to determine the value of the company, and, largely because of that, the stock price can be subject to more volatility than a traditional IPO.
Direct listings remain relatively rare and generally rely on a company being well known to attract investors.
For example, Swedish music streaming service Spotify went public with a direct listing in April 2018.
Regan said Bright Green’s initial reference price of $8 a share, which translated to a market value of about $1.25 billion, and the subsequent rise to $58 a share, or $9 billion in market value, were “very speculative.”
The prices were likely based, he said, on speculators attracted by the idea of “the one federally legal cannabis company in the United States” – even though the only similarity to MSOs is the cannabis plant itself.
“It’s like comparing the markets for popcorn and industrial ethanol because they both come from corn,” Regan said.
Who benefits?
In the case of a direct listing, the existing private shareholders can sell their shares at the time the business goes public, but the company doesn’t raise cash.
According to regulatory filings with the U.S. Securities and Exchange Commission a few days before Bright Green went public, the largest shareholder was co-founder Lynn Stockwell with 69.6 million shares, followed by Chair Terry Rafih with 20 million shares and Bright Green CEO Edward Robinson with 5 million shares.
Stockwell is the wife of the company’s former CEO, John Stockwell, who first announced plans for a medical cannabis research facility in New Mexico in 2017.
$300 million plan
Bright Green announced plans in October 2021 to break ground on a $300 million medical cannabis research complex in Grants.
According to regulatory filings, Bright Green expected to incur $13.5 million of expenses in 2022 to renovate an existing greenhouse, which it expected to be completed this month. It is unclear whether that’s on schedule.
The company said it planned to spend a total of $76.5 million this year for all its renovation and construction projects.
But in the first three months of this year, Bright Green incurred only $726,346 in operating expenses, compared with $509,541 in the same period of 2021, according to the company’s first-quarter financial report.
In regulatory filings, Bright Green said the existing greenhouse renovation project will include a 2-acre “University Greenhouse” that will house its cannabis research, development, cultivation and manufacturing operations.
The idea also is to pursue potential partnerships with “leading U.S. universities,” according to the filings.
Bright Green said the “memorandum of understanding” with the DEA also anticipates that the company will grow cannabis for its own research and product-development efforts, which might include the bulk production of marijuana extracts and highly purified cannabinoids and derivatives.
The facility will have the capacity to house 50,000 plants at one time of various maturities.
In addition, Bright Green estimates it will harvest about 300,000 mature plants a year, with multiple harvests per year.
Bright Green said it will equip the greenhouses with such automated growing technologies as the Visser transplanter robot.
Matt Karnes, founder of New York-based cannabis financial consultancy GreenWave Advisors, expressed concern about the potential fallout from Bright Green’s roller-coaster ride.
“Given the speculative nature of this business,” he said, “it seems that the approval to direct list on the Nasdaq was premature.”
Karnes said that the Bright Green situation underscores the need for a more rigorous vetting process on the part of regulators with respect to approving businesses for listing on a major exchange that have or claim to have a license to cultivate cannabis under federal jurisdiction.
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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