Bright Green Corp. (BGXX:NSD) has declared it will investigate illicit BGXX stock trading involving its shares. This follows the company’s recent $500 million capital raise under the EB-5 financing program.
In a statement, the business stated, “The underperformance of our shares relative to the market is a clear indicator of unlawful short selling, which has had a substantial impact on the value of BGXX stock.”
Legal restrictions prevent naked short-selling, although the practice persists due to legal loopholes. It involves the short sale of a stock that may not exist. The SEC (Securities and Exchange Commission) is conducting additional investigations and enforcing regulations to avoid this type of criminal activity in the future.
In the meantime, BGXX issued a notice to investors cautioning them from engaging in any type of transaction involving BGXX stock while the inquiry is ongoing. Other than that, no other information has been disclosed regarding the probe or the cause of the unexpected spike in stock prices.
Bright Green Corporation focuses on the propagation, cultivation, and manufacturing of cannabis products.
It intends to offer cannabis products, including cannabis flower, pre-rolls, concentrates, vape pens, capsules, tinctures, edibles, topicals, and other cannabis-related products The company was incorporated in 2019 and is based in Grants, New Mexico.