Bright Green Corporation (NASDAQ:BGXX) has signed a letter of intent (LOI) to supply its DEA-approved cannabis extracts and plant-based psychedelics to Benuvia Operations, an FDA-registered, DEA-licensed and cGMP-certified leader in pharmaceutical cannabinoids and psychedelic compounds currently under investigation for clinical use.
In February, the Grants, New Mexico-based company received final approval from the New Mexico Board of Pharmacy and the DEA to register, license and authorize Schedule I and Schedule II plant-based substances and active pharmaceutical ingredients for research, production and manufacturing purposes.
Under the proposed supply agreement in the LOI, Benuvia plans to utilize Bright Green's unique capability to produce Schedule I and II raw materials, fully compliant with Good Agricultural and Collection Practices (GACP), Good Manufacturing Practices (GMP) and DEA regulations. These raw materials will be used to manufacture cGMP pharmaceutical-grade Active Pharmaceutical Ingredients domestically for both U.S. and global markets.
Read Also: LSD's Potential In Pain Management: New Research Sheds Light On Psychedelic's Influence On Brain Networks
Schedule I substances include cannabis, psilocybin, mescaline, peyote and ibogaine. Schedule II substances include various forms of opium, such as raw opium, poppy straw, opium extracts, powdered opium, granulated opium, opium tincture, opium fluid extracts and opium straw concentrates, as well as erythroxylon coca (cocaine).
- Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you're serious about the business, you can't afford to miss out.
Bright Green sees this as yet another step towards becoming the leading domestic supplier of DEA-controlled, plant-based raw materials to produce cannabinoid, psychedelic and opioid-based drugs in the USA. With a new round of fundraising and supply agreements in the works, the company says it is positioned for a strong performance in 2025.
The Drug Enforcement Administration (DEA) just completed its annual operational procedures for all Schedule I and II drug cultivation and manufacturing in July. Bright Green met this national standard and is now one step closer to beginning operations and supplying the pharmaceutical world with the materials it needs to innovate.
Price Action
Bright Green Corporation shares traded 2.6% higher at $0.23 per share at the time of publication.
- Village Farms And TILT Holdings: A Tale Of Two Cannabis Companies Facing Diverging Fortunes
Photo: Courtesy of Ryland zweifel via Shutterstock