Welcome to our dedicated page for 22nd Century Group news (Ticker: XXII), a resource for investors and traders seeking the latest updates and insights on 22nd Century Group stock.
22nd Century Group, Inc. (NASDAQ: XXII) is a pioneering agricultural biotechnology company based in the United States. The company specializes in reducing the harms associated with smoking through advanced plant science technologies. 22nd Century leverages proprietary technology to precisely control the levels of nicotine in tobacco plants, making them significantly lower or higher through genetic engineering and selective breeding.
22nd Century operates primarily in the tobacco sector, commercializing its proprietary very low nicotine content (VLNC) tobacco plants and cigarette products. These products include reduced nicotine tobacco cigarettes marketed under the brand VLN®, which have up to 97% less nicotine than traditional cigarettes. VLN® received the first and only FDA Modified Risk Tobacco Product (MRTP) authorization for a combustible cigarette in December 2021, underscoring its breakthrough in the industry.
The company also has a significant footprint in the cannabis sector, applying its technology to control cannabinoid levels in cannabis plants, aiming to optimize health and wellness benefits. The company's wholly-owned subsidiaries, Goodrich Tobacco Company and Hercules Pharmaceuticals, focus on premium tobacco products and smoking cessation aids, respectively.
Recent strategic moves include restructuring to streamline operations and improve financial performance. The company has reduced cash use from $15 million a quarter to under $4 million projected for the first quarter of 2024. Recent business highlights feature new contract manufacturing agreements and expanded product lines, such as the Pinnacle brand cigarettes and cigarillos. These efforts are expected to propel 22nd Century towards cash-positive operations by Q1 2025.
Financially, the company has taken steps to bolster its balance sheet, announcing multiple equity transactions to reduce long-term and short-term debt. As of December 31, 2023, the company held $2.1 million in cash, with subsequent capital infusions improving liquidity. Revenue is majorly derived from its tobacco segment, with research cigarettes sold under the SPECTRUM brand adding to commercial activities.
For investors, 22nd Century's commitment to innovation in plant biotechnology presents a compelling case for growth. The company continues to host quarterly earnings calls, with the latest results showing promising advances in both financial metrics and strategic goals. Learn more at xxiicentury.com
22nd Century Group (XXII) reported Q3 2024 financial results showing a decrease in net revenues to $5.9 million from $7.9 million in Q2 2024. The company reported a gross loss of $0.6 million and increased operating loss to $3.4 million. Net loss expanded to $3.6 million with EPS at $(0.27). Cigarette revenues increased to $4.1 million, while filtered cigars revenue declined to $1.7 million. The company aims to achieve EBITDA breakeven in Q1 2025 and plans to launch additional VLN® SKUs within key customer brand families to expand distribution of reduced nicotine content cigarettes.
22nd Century Group (NASDAQ: XXII), a tobacco products company, will announce its third quarter 2024 results on November 12, 2024. The financial results will be released at 6:00 AM ET, followed by a webcast at 8:00 AM ET. During the webcast, CEO Larry Firestone and CFO Dan Otto will review the financial performance and discuss recent progress. The webcast will be available live and archived on the Company's Investor Relations section at https://ir.xxiicentury.com/events. For access, register at least 15 minutes prior to the start of the webcast.
22nd Century Group, Inc. (NASDAQ: XXII), a tobacco products company focused on reducing nicotine consumption, has announced its participation in the LD Micro Main Event XVII investor conference in Los Angeles from October 28-30, 2024. The company will deliver a group presentation on October 30, 2024, at 3:30 pm Pacific Time. Investors can join the presentation online via a webcast link available on the company's investor relations website.
Additionally, Larry Firestone, Chief Executive Officer, will be available for investor meetings throughout October 30. In-person attendees can request meetings through LD Micro's meeting portal or by contacting 22nd Century's IR contact. Qualified investors interested in attending the conference should reach out to LD Micro's registration email.
22nd Century Group, Inc. (NASDAQ: XXII) has regained compliance with Nasdaq's minimum stockholders' equity requirement of $2.5 million. The company, which focuses on tobacco products and reducing nicotine consumption, achieved this through new equity offerings and reducing liabilities and debt. Over the past two quarters, 22nd Century Group has raised $11.6 million in equity proceeds and improved its balance sheet.
CEO Larry Firestone expressed satisfaction with the compliance confirmation and highlighted the company's efforts to improve its financial position. He emphasized their commitment to maintaining listing compliance and creating long-term shareholder value.
22nd Century Group (NASDAQ: XXII) has announced an expansion of its Contract Manufacturing Organization (CMO) business with an existing customer. The company will now produce filtered cigar products for this customer, with initial shipments expected in Q4 2024 and anticipated annual volumes of 200,000 cartons or more. This agreement complements an earlier deal for export conventional cigarette products, which is expected to increase overall CMO business volumes by 20%.
The combined business from this customer is projected to significantly boost production volume and profitability for 22nd Century's CMO operations. CEO Larry Firestone highlighted that high-volume export contracts like these are working capital efficient, supporting the company's goal of achieving cash-positive operations by Q1 2025.
22nd Century Group, Inc. (NASDAQ: XXII) has announced a new customer agreement to supply its Moonlight branded cigarettes to the Southeast Asia marketplace. The first shipment is expected in Q4 2024, with potential for significant volume expansion as the customer launches in key markets throughout 2025. This new contract could increase manufacturing volumes by more than 30% over the next 15 months when fully scaled.
CEO Larry Firestone highlighted this as an opportunity to deploy underutilized in-house brand assets and drive growth in a region with a widespread smoking culture. The company is also discussing similar opportunities with other customers interested in their brands and predicates, as well as reduced nicotine content products under their own branding.
22nd Century owns several brands including Pinnacle, Moonlight, Magic, and Ranger, in addition to its VLN® 95% reduced nicotine content cigarettes. The company recently launched VLN® products in South Korea and plans to expand its U.S. strategy with flanker brands for additional reduced nicotine content products.
22nd Century Group (NASDAQ: XXII) has announced plans to expand distribution of its VLN® 95% reduced nicotine content smoking products. The company aims to reach over 270,000 retail outlets in the US and grow internationally. Based on recent consumer data, 22nd Century is expanding its sales and marketing operations. The company's low nicotine tobacco stock can supply up to $85 million worth of VLN® revenue and positive cash flow.
Key initiatives include:
- Expanding US distribution from 5,100 stores across 26 states to nationwide coverage
- Increasing international sales through partnerships
- Launching flanker brands based on proprietary 95% less nicotine tobacco
- Utilizing existing inventory to manufacture up to 1.4 million cartons of VLN® and flanker brand cigarettes
22nd Century Group (NASDAQ: XXII) has announced an agreement to fund over $1.2 million in intellectual property, licensing, and sponsored research payments to North Carolina State University through 2025. This equity transaction covers all expenses related to patent maintenance, royalty, license, and sponsored research from Q4 2023 through 2025. The payments will be made in three tranches, with the company having the option to pay in equity or cash. Additionally, 22nd Century has extended its field trial activity to 2025. This agreement follows the company's November 2023 deal with NCSU, which brought in additional IP to enhance their reduced nicotine content tobacco capabilities.
22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company focused on nicotine harm reduction, has announced its participation in the HC Wainwright Conference on September 10, 2024 at the Lotte New York Palace Hotel. The company, known for its VLN® brand with 95% less nicotine, invites investors to register and request meetings with management through their HC Wainwright representatives.
22nd Century Group will also make an updated investor presentation available online at their investor relations website. This conference participation highlights the company's commitment to engaging with investors and showcasing their innovative approach to tobacco harm reduction.
22nd Century Group (NASDAQ: XXII) has raised $1.68 million through a Regulation A offering and private placement of common warrants. The company has also amended its Senior Secured Credit Facility with JGB Partners, suspending certain provisions and limiting monthly redemption rights. These financial moves aim to support the company's focus on scaling its contract manufacturing business and expanding its FDA-authorized VLN® reduced nicotine content product line. The Regulation A offering was priced at $0.57, and the amendments to the debenture agreements will be in effect through December 31, 2024, for the suspension of equity issuance payments, and through July 2025 for the monthly redemption rights.
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