22nd Century Group Expands Reduced Nicotine Platform Through New Testing Services Agreement with North Carolina State University
Rhea-AI Summary
22nd Century Group (Nasdaq: XXII) signed a testing services agreement with North Carolina State University to validate reduced‑nicotine tobacco varieties focused on higher yields, improved leaf quality, consistent low‑nicotine content, scalable production, and grower sustainability. The work will include field evaluations, yield calculations, quality assessments and nicotine quantification, building on the company’s proprietary low‑nicotine genetics and FDA‑authorized VLN® combustible cigarette platform.
AI-generated analysis. Not financial advice.
Positive
- None.
Negative
- None.
News Market Reaction – XXII
On the day this news was published, XXII declined 16.59%, reflecting a significant negative market reaction. Argus tracked a peak move of +21.7% during that session. Argus tracked a trough of -19.5% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $294K from the company's valuation, bringing the market cap to $1.48M at that time. Trading volume was very high at 3.2x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
XXII is down 4.21% while peers are mixed: GNLN appeared in momentum scanners down 17.90%, HCWC up 7.97%. Broader tobacco/cannabis peers like TPB and UVV show modest gains, pointing to stock-specific pressure rather than a uniform sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 07 | Product development news | Positive | +0.5% | Advancing 100mm VLN® product and PMTA to expand U.S. cigarette reach. |
| Mar 26 | Earnings results | Negative | -10.6% | Q4 and 2025 results with $17.6M revenue and continued net losses. |
| Mar 23 | Earnings date notice | Neutral | -1.7% | Announcement of timing and webcast details for Q4 and 2025 results. |
| Feb 23 | Commercial update | Positive | +0.6% | Early VLN® sales momentum with 8,800 cartons across 1,700 new outlets. |
| Feb 20 | Preliminary earnings | Negative | -15.6% | Preliminary 2025 results showing revenue decline to $17.6M and net loss. |
Across recent events, XXII’s price has generally moved in the direction implied by the news tone, with negative earnings updates followed by declines and product/regulatory progress met with modest gains.
Over the last six months, XXII has focused on its VLN® reduced-nicotine platform and financial reset. News on Feb 20 and Mar 26 detailed 2025 revenues of $17.6M, ongoing net losses and improved balance sheet metrics, with shares often declining after earnings-related releases. In contrast, VLN® commercialization and product development updates on Feb 23 and Apr 7 saw small positive reactions, suggesting investors have rewarded progress tied directly to the reduced-nicotine strategy.
Regulatory & Risk Context
An effective Form S-3 shelf dated Mar 31, 2026 permits XXII to offer up to $250,000,000 of securities, including a registered $1,840,000 at-the-market common stock program. With 2 recent 424B5 usages, this creates ongoing capacity for capital raises that could be dilutive, alongside the already registered Series B preferred and warrants.
Market Pulse Summary
The stock dropped -16.6% in the session following this news. A negative reaction despite constructive R&D news fits a pattern where balance sheet and dilution risk overshadow operational progress. The NC State collaboration strengthens an FDA-authorized platform with “95% less nicotine” and roots in a December 2021 decision, but the effective $250,000,000 shelf and ATM capacity, plus outstanding preferred and warrants, could have reinforced shareholder concerns about ongoing capital needs.
Key Terms
modified risk tobacco product (mrtp) regulatory
alkaloid characterization medical
nicotine quantification medical
plant genetics technical
AI-generated analysis. Not financial advice.
MOCKSVILLE, N.C., April 23, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company focused on nicotine reduction and plant biotechnology, today announced corporate updates regarding a new testing services agreement with North Carolina State University aimed at validating tobacco varieties featuring improved leaf quality and increased crop yields with the same low-nicotine content.
The initiative builds upon 22nd Century’s proprietary reduced nicotine content technology platform, which utilizes advanced plant breeding and biotechnology to reduce nicotine content in tobacco to minimally addictive levels. The Company’s reduced nicotine tobacco is the foundation of its FDA-authorized VLN® combustible cigarette products and represents years of scientific development in plant genetics and regulatory science.
The newly signed testing services agreement will focus on confirming commercial viability of tobacco varieties incorporating 22nd Century’s patented low-nicotine genetics to increase yield, improve leaf quality and consistency, support more efficient, scalable production, ensure long-term sustainability for contracted growers, and preserve the integrity of the Company’s reduced-nicotine characteristics.
Larry Firestone, Chief Executive Officer of 22nd Century Group, stated “This is about producing robust reduced nicotine tobacco plants from the ground up. As policymakers and regulators around the world continue to focus on health, wellness, and sensible standards that reduce nicotine dependence, we believe our VLN® products are in prime position to support that global dialogue. Our products and technology directly align with the U.S. FDA’s proposed maximum nicotine standard and broader global public health objectives aimed at lowering addiction levels across the U.S. and around the world. This important research only further strengthens our commitment and consistent track record of demonstrating commercial viability. We believe our reduced nicotine VLN® cigarette products are the best alternative to highly addictive standard cigarettes and other nicotine products in the market if the FDA’s policies were implemented.”
“By continuing to partner with North Carolina State University, one of the nation’s premier agricultural research institutions, we are investing in next-generation plant science to further strengthen our proprietary tobacco genetics. Improving the yield and quality of low-nicotine tobacco is not just good agronomy, it strengthens American farming, enhances supply chain resilience, and ensures that our reduced nicotine platform can scale reliably and sustainably. We are combining innovation, regulatory alignment, and agricultural excellence to deliver a product designed for the future of nicotine policy and adult consumer choice.”
Under the terms of the testing services agreement, researchers at North Carolina State University will work alongside 22nd Century’s plant science team to evaluate genetic pathways associated with increased harvest volume per acre and an even better-quality leaf for our new lines of reduced nicotine tobacco. The research is expected to include field evaluations, quality assessments, yield calculations, and alkaloid characterization with nicotine quantification.
The collaboration with North Carolina State University reflects 22nd Century’s continued commitment to science-driven innovation across the entire value chain, from plant genetics to finished product as we advance our mission to reduce the harms associated with smoking and nicotine.
The Company will provide updates as research milestones are achieved.
FDA Authorization and Scientific Foundation
VLN® low nicotine combustible cigarettes were authorized in December 2021, making them the first and still the only combustible cigarettes authorized by the U.S. Food and Drug Administration specifically to help reduce nicotine consumption.
Decades of independent clinical research and peer-reviewed studies—evaluated as part of the FDA’s Modified Risk Tobacco Product (MRTP) authorization process—demonstrated that reducing nicotine content can decrease nicotine intake, increase quit attempts, and reduce overall exposure to nicotine.
FDA-authorized VLN® claims include:
- “
95% less nicotine” - “Helps reduce your nicotine consumption”
- “Greatly reduces your nicotine consumption”
- “Helps you smoke less”
About 22nd Century Group, Inc.
22nd Century Group is pioneering the Tobacco Harm Reduction Movement by enabling smokers to take control of their nicotine consumption.
Our Technology is Tobacco
Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains
Our Products
We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
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 expectations regarding regulatory enforcement, including our ability to receive authorization or approval for new products, and (ii) our financial and operating performance. 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 26, 2026. 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
investorrelations@xxiicentury.com
214-597-8200
