Bullish Green
2 years ago
Government bureaucracy always moves slow. I expect that the DEA is doing their own DD into the company. There is no mention on the website about how long that takes but the wording in the conditional contract alludes that the process could take longer that 4 years ultimately.
I. Background and Purpose
This Memorandum of Agreement (MOA) is between the Department of Justice, Drug Enforcement Administration (DEA), and Bright Green Corporation (Grower) who has applied for a DEA registration as a bulk manufacturer to supply to researchers of any (or all) of the following schedule I controlled substances: Marihuana Extract (7350) and Marihuana (7360) at 1033 George Hanosh Boulevard, Grants, New Mexico 87020, under DEA Document Control Number W20078135E.
XIII. Non-Liability of Drug Enforcement Administration
The United States assumes no liability with respect to the performance of any contractual terms agreed to by Grower and a Buyer of bulk marihuana, including but not limited to the quantity or quality of any marihuana delivered to a Buyer. If a Buyer deems the delivered marihuana to be defective, the Buyer’s sole remedy for damages will be against Grower and not the United States.
XIV. Duration, Amendment, and Effect
A. Execution: This MOA may be executed in counterparts, each of which constitutes an original, and all of which constitute one and the same agreement. Copies or facsimiles of signatures will constitute acceptable, binding signatures for purposes of this MOA. This MOA is effective and becomes binding upon the date of the last signature below. Each person who signs this MOA in a representative capacity warrants that he or she is fully authorized to do so. The government signatories represent that they are signing this MOA in their official capacities.
B. Automatic Renewal: Unless terminated for cause by DEA, this MOA is effective for a one-year initial term from its effective date, subject to automatic renewal for up to four additional one- year terms.
1. If, at the time the initial term or a renewal is set to expire, the Grower has submitted a renewal application that is still being processed by the DEA at the end of a one-year term and is allowed to continue to operate on a day-by-day basis until the registration is renewed in accordance with 21 C.F.R. § 1301.36(i), the term set to expire will be automatically extended until the registration is renewed.
2. This MOA will automatically renew for an additional one year term upon DEA’s approval of Grower’s application for renewal of its registration as a bulk manufacturer of marihuana, marihuana extract, and THC unless, on or before 60 days before the expiration of the current term, either party provides written email notice of its intention not to renew.
3. This MOA will terminate at the end of the fourth renewal term or the end of a one-year term that is not renewed.
Bullish Green
2 years ago
Apparently this is a very hard license to get. Per the doj.gov website, only 7 companies hold this license as listed on DOJ website.
https://www.deadiversion.usdoj.gov/drugreg/marihuana.htm#:~:text=You%20may%20apply%20for%20a,Registration%20(usdoj.gov).
List of the DEA approved Bulk Manufacturer Marihuana Growers:
Biopharmaceutical Research Company LLC
Groff NA Hemplex LLC
Irvine Labs, Inc.
Maridose, LLC
National Center for Development of Natural Products
Royal Emerald Pharmaceuticals Research and Develop
Scottsdale Research Institute
The website is very clear on the process. A few points stand out as to the timeframe we can expect $BGXX to actually make any money. The biggest hurdle is actually aquiring the license. Who knows how long that may take. Again, who knows how long that will be. After this unknown variable, then the process starts.
A. Bona Fide Supply Agreement and Quota
As stated in the sample memorandum of agreement (MOA), on or before May 1 of the year preceding the year in which marihuana is to be grown, the grower1 will furnish an individual manufacturing quota (IMQ) application utilizing DEA Form 189. (Numbers correspond with the diagram below.)
Grower enters into bona fide supply agreement(s) with buyer(s).2
Grower will include in their IMQ application copies of documents that constitute the bona fide supply agreement(s) (BFSA) that justifies their quota application request. For purposes of calculating Grower’s IMQ, DEA will only consider BFSA from existing DEA registrants.
Upon receipt of quota, the grower may grow marihuana within the terms and conditions of the quota and memorandum of agreement.3
B. Advance Notification and Invoicing
In accordance with the MOA, the grower will provide DEA with a 15-day advance written notification of its intent to harvest marihuana, including the date/time in which harvesting will begin.
When the grower provides this notification, the grower will invoice4 DEA for the harvested marihuana it intends to sell to DEA.
Additionally, the buyer is expected to submit an order form (DEA Form 222), expressing all quantities in kilograms, to DEA for the purchase of marihuana to be harvested.
DEA, in turn, will invoice5 the buyer identified in the grower’s invoice. The buyer’s order form number will be referenced in DEA’s invoice to the buyer; therefore, the order form must be received by DEA before DEA can invoice the buyer.
Upon receipt of payment, DEA will authorize the grower to ship.
C. Harvest and Transfer of Ownership
DEA personnel will arrive at the grower’s registered location to take physical possession of the crop. While DEA will make every effort to arrive on the day of harvest, DEA will take possession within four months of the harvest.6
DEA will take ownership of the crop by executing a DEA Form 222. Grower may need to store marihuana in a pre-approved secure location on behalf of DEA.
DEA will authorize the grower to make distributions from DEA’s stocks of marihuana to those buyers who entered into BFSAs with the grower once DEA has confirmed that the buyer has made payment to DEA for both the negotiated rate and the administrative fee. The grower shall bear the cost of shipping marihuana to the buyer.7
DEA will pay the grower within 30 days of taking ownership of the crop.
So They must get a license. Submit a year prior to growing. Actually grow the crop. Submit 15 days before the harvest. Harvest. Give DEA control of the harvest (up to 4 months). 30 days later to get paid.
So in reality, it'll be at least 2 years before they ever turn a dime AFTER they get the license.
Just a side note:
I have a theory that they may try to use the Alterola Biotech subsidiary to attain DEA approved buyer staus "in house" for research. What that may accomplish, or how they will accomplish that, who knows but it is something to consider.
IMO they will be burning through cash for a while. I expect an AS increase in the meantime. I'll wait for a lower entry.