22nd Century Announces New Greenbutts Manufacturing Agreement for Innovative Plant-Based, Biodegradable Cigarette Filters
22nd Century Group (NASDAQ: XXII) has entered into a multi-year agreement with Greenbutts to manufacture innovative, biodegradable cigarette filters at their Mocksville, NC facility. Greenbutts' patented technology aims to replace plastic-based filters with water-soluble, plant-based alternatives, addressing the significant environmental issue of cigarette butt litter. With over 6 trillion cigarettes produced annually and 65% of butts littered, these new filters promise a non-toxic, eco-friendly solution. The partnership will support Greenbutts' FDA approval process, with plans for commercial production to follow, potentially integrating these filters into 22nd Century's VLN® reduced nicotine cigarettes and other conventional brands.
- 22nd Century Group's multi-year agreement with Greenbutts introduces an innovative, biodegradable solution to cigarette filters, addressing a major environmental concern.
- The partnership aims to replace plastic-based filters with water-soluble, plant-based alternatives, aligning with eco-friendly initiatives.
- The agreement supports Greenbutts' FDA approval process, with potential for full commercial production, indicating future revenue streams.
- Potential integration of biodegradable filters into 22nd Century's VLN® reduced nicotine cigarettes could enhance product appeal.
- The success of the agreement hinges on Greenbutts obtaining FDA approval, which introduces regulatory risk.
Insights
The agreement between 22nd Century Group and Greenbutts, LLC has significant implications for both the tobacco industry and environmental sustainability. Cigarette butts are a major pollutant and the introduction of a fully biodegradable, water-dispersing filter could drastically reduce the environmental footprint associated with smoking.
From an environmental perspective, the patented technology addresses a long-standing issue of plastic waste, especially in aquatic ecosystems. The transition from traditional plastic-based filters to biodegradable options could not only reduce long-term pollution but also resonate well with a growing consumer base that is increasingly conscious of environmental sustainability.
The agreement not only leverages 22nd Century's existing manufacturing capabilities but also positions the company as a forward-thinking player in the tobacco industry. This could offer a competitive advantage in markets where environmental regulations are becoming stricter, potentially leading to increased demand for their products. However, the success of this innovation will ultimately depend on consumer acceptance and regulatory approvals.
Investors should factor in the positive environmental impact this technology could have, which may translate into increased goodwill and potential market differentiation. This is particularly relevant given the ongoing global push towards sustainable practices across various industries.
This agreement represents a strategic move for 22nd Century Group as it aims to diversify its product offerings and tap into the growing demand for environmentally friendly solutions. By partnering with Greenbutts, LLC, 22nd Century Group can utilize its Mocksville, North Carolina NASCO manufacturing facility to produce innovative filters, thereby optimizing its existing resources and potentially enhancing its revenue streams.
The multi-year agreement underscores a long-term commitment, suggesting that both companies anticipate significant returns on investment. The pursuit of FDA approval is crucial; successful approval could open doors to a larger market, including partnerships with other cigarette brands. Financially, this could lead to an increase in both top-line revenue and bottom-line profits, especially if the biodegradable filters gain traction in the market.
Investors should keep an eye on the FDA approval process as a key milestone. Additionally, it’s important to monitor consumer response and how other tobacco companies react. If 22nd Century Group can secure substantial market share with this innovation, it could significantly enhance shareholder value.
The pending FDA approval is a pivotal point in this agreement. Regulatory compliance will be a major factor in determining the success of this biodegradable filter technology. The FDA's stringent requirements for tobacco product innovations mean that both companies must ensure the product meets all necessary health and safety standards.
The innovative filter technology could also influence future regulatory frameworks. As governments worldwide look to reduce plastic waste, having a biodegradable filter option may align perfectly with evolving policies. This can potentially expedite the approval process and adoption rates across different markets.
From a legal standpoint, the agreement appears to be well-structured, leveraging 22nd Century Group's existing manufacturing infrastructure while allowing Greenbutts to focus on product innovation and regulatory compliance. It's a symbiotic relationship that could set a precedent for similar collaborations in the industry.
Investors should be aware of the regulatory landscape and any changes that could impact the approval and commercialization of this product. The alignment with global environmental objectives could serve as a catalyst for regulatory support, thereby mitigating some of the risks involved.
Patented, Fully Water Dispersing, Biodegradable Solution for World's Most Littered Item
Mocksville, North Carolina--(Newsfile Corp. - July 10, 2024) - 22nd Century Group, Inc. (NASDAQ: XXII), a tobacco products company focused on nicotine harm reduction and contract manufacturing, today announced an agreement with Greenbutts, LLC to provide manufacturing space at its Mocksville, North Carolina NASCO manufacturing facility and NASCO staff to operate the manufacturing equipment for an innovative new cigarette filter solution. Greenbutts offers a patented technology to replace single-use, plastic-based filters currently used in tobacco products with water soluble, fully biodegradable filter solutions.
Said Larry Firestone, Chairman and CEO: "With an estimated 6 trillion manufactured every year, plastic-based cigarette butts are the most abundant form of plastic waste worldwide. Adding to that, an estimated
"Under this new multi-year agreement, 22nd Century Group will provide the manufacturing space and support needed to produce sample product to allow Greenbutts to pursue FDA approval, with the mutual goal thereafter of expanding to full commercial production. We see this as an exciting new innovation and disruptor that could be used in both our VLN® reduced nicotine content cigarettes, the first and only combustible cigarette to receive an FDA harm reduction authorization, and in our CMO business for other conventional cigarette brands as well, where advanced discussions about potential use in cigarette products are already underway."
About 22nd Century Group, Inc.
22nd Century Group, Inc. (NASDAQ: XXII) is an agricultural biotechnology company focused on tobacco harm reduction, reduced nicotine tobacco and improving health and wellness through plant science. With dozens of patents allowing it to control nicotine biosynthesis in the tobacco plant, the Company has developed proprietary reduced nicotine content (RNC) tobacco plants and cigarettes, which have become the cornerstone of the FDA's Comprehensive Plan to address the widespread death and disease caused by smoking. The Company received the first and only FDA Modified Risk Tobacco Product (MRTP) authorization for a combustible cigarette in December 2021. The Company is a subsequent participating manufacturer under the Master Settlement Agreement ("MSA") and vertically integrated for the production of its both own products and contract manufacturing operations ("CMO"), which consist primarily of branded filtered cigars and conventional cigarettes.
About Greenbutts™️
Since 2010, Greenbutts has worked with leading R&D institutions, multinational tobacco companies, and industry experts to develop a natural filter technology, capable of replacing the most littered plastic item in the world- cellulose acetate cigarette filters. Driven by recent single-use-plastic (SUP) legislation enforced by governments, the Company is actively engaged in the global commercialization of its proprietary, plastic-free and trademarked material technology, Greenbutts™, fulfilling the global industry demand for biodegradable filters. Greenbutts filters are certified to disperse in water within minutes and degrade in compost within days, as opposed to 10-15 years as is the case with traditional cellulose acetate filters.
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Learn more about VLN® at tryvln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-Looking statements typically contain terms such as "anticipate," "believe," "consider," "continue," "could," "estimate," "expect," "explore," "foresee," "goal," "guidance," "intend," "likely," "may," "plan," "potential," "predict," "preliminary," "probable," "project," "promising," "seek," "should," "will," "would," and similar expressions. Forward-Looking statements include, but are not limited to, statements regarding (i) our strategic alternatives and cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in "Risk Factors" in the Company's Annual Report on Form 10-K filed on March 28, 2024 and Quarterly Report on Form 10-Q filed on May 15, 2024. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
mkreps@xxiicentury.com
214-597-8200
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216048
FAQ
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