One of the more significant moves in today’s market belongs to Bright Green (NASDAQ:BGXX). Shares of the cannabis company have soared on an announced capital raise, with BGXX stock closing Wednesday trading higher by 170%.
Any time a stock moves like this within a single day, there’s some big news. In the case of this New Mexico-based cannabis producer, that’s certainly the situation. Bright Green has announced plans to raise $500 million under the U.S. Citizenship and Immigration Services’ EB-5 capital program. Accordingly, with a market capitalization of only $250 million, this is clearly a massive catalyst investors are pricing in.
Let’s dive into what investors may want to make of this news.
BGXX Stock Soars on Capital Raise Announcement
The company’s ability to raise capital to create jobs is something investors clearly like. Indeed, not having to tap equity or debt markets for growth capital is a great thing.
The company’s focus on propagating and manufacturing cannabis products is now much clearer for investors. This is a company that is intent on growing its drug manufacturing capabilities. With this capital raise, Bright Green’s prospects certainly seem much brighter.
Like many of its cannabis peers that have been hit hard by last year’s revaluation in the markets, 2023 appears to be providing much more positive news for high-growth stocks in this sector. The fact that government funding is materializing is good news for Bright Green and its peers. Thus, this is a stock I’ve put on my watch list, considering how impactful this move has been today.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.