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
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.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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