Bright Green Corp. (OTC: BGXX) plans to file a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Florida in the coming days.

The company has seen much upheaval in the past few months and failed to achieve the big promises it laid out.

In December, Bright Green announced that its CEO, Gurinder Singh, resigned, along with board members Dean Deson, Robert Arnone and Dean Valore. In addition, Saleem Elmasri also resigned as the chief financial officer, leaving only Lynn Stockwell to run the company.

Board departures

At the time of the resignations, it was announced that now-CEO Stockwell wanted to restructure the company. Her plan was to on-shore the end-to-end active pharmaceutical ingredient (API) manufacturing back to the United States and position the company as the facilitator and supplier of plant-based controlled substances authorized to manufacture in the U.S.

The restructuring and new direction included canceling all the company’s existing contracts, expressed or implied; land purchase options; employment agreements; board member agreements; financing agreements; and warrants.

The company also said it would repay creditors of allowed general unsecured claims in the form of 20% in cash plus 80% in newly issued common stock,. Bright Green said it will issue new common stock to the existing holders of common stock after a 1-for-50 reverse stock split, such that their dilution is limited to the newly issued common stock to the creditors.

“Simply put, Bright Green Corp. was in an extraordinary unique position to produce, manufacture and research legal controlled substances, under registration and licensing with both state and the federal government,” Stockwell said. “The company was unable to take advantage of the opportunity and was compromised financially when globalization policies were not favorable for research, production and manufacturing within the United States. In addition, the past immigration policy made funding from the company’s EB-5 program for investment capital impossible”.

Big plans … again

Once it emerges from bankruptcy, the company said it will change its name to Drugs Made in America Corp. Bright Green said it plans to get revenue from “production and supply contracts and maintain its EB-5 investor program.”

According to the company, it will “seek to partner with Health and Human Services and designate scientific support for research at the existing facility in Grants, New Mexico, on a contract, cost-plus basis.”

Franchise plans

Bright Green also said it is exploring a franchise-based business model to build agriculture facilities in phases across western Texas, eastern Arizona and central New Mexico.

“Each facility will include 15-acre specialty greenhouses, constructed annually until market demand is met,” the company said.

The company expects to receive a federal loan guarantee for its 60 new megafarm owner/operators, who collectively will invest $3.5 billion to supply and strengthen the Drugs Made in America supply chain.

Bright Green never delivered

Green Market Report has previously written about Bright Green‘s big promises to investors that it ultimately never delivered upon. The company crowed about its approval to grow cannabis for research with a DEA license. It also claimed it had built a huge growing facility but had to return most of the equipment for failing to pay the vendor.

The company never delivered any cannabis for research and never reported any revenue. What it did accomplish was paying its executives generous salaries and taking out large credit lines. The company kept telling investors that harvests were on the horizon, but nothing ever materialized.

Eventually, the stock was delisted from the Nasdaq and lately traded on the OTC for roughly four cents a share.