22nd Century Group Receives $8.1 Million from Cash Exercise of Outstanding Warrants

Rhea-AI Summary

22nd Century Group, Inc. (NYSE American: XXII) announced it received net proceeds of $8.1 million from warrants exercised in February and March 2021, enhancing its balance sheet. The company expects an additional $3.7 million if remaining warrants are exercised. CEO James A. Mish stated that the capital will support operations, strategy, and growth initiatives across tobacco and hemp/cannabis sectors. The funds will aid in acquiring Modified Risk Tobacco Products (MRTP) authorization and support research in hemp/cannabis.

Positive

• Secured $8.1 million in net proceeds from warrant exercises, strengthening balance sheet.
• Potential for an additional $3.7 million if remaining warrants are exercised.
• Funding will support operations, strategy, and growth initiatives in tobacco and hemp/cannabis sectors.

Negative

• None.

WILLIAMSVILLE, N.Y., March 04, 2021 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NYSE American: XXII), a leading plant-based, biotechnology company focused on tobacco harm reduction, very low nicotine content tobacco, and hemp/cannabis research, today announced that it has received net proceeds of $8.1 million from the cash exercise of outstanding warrants during February and March of 2021. The remaining warrants, if exercised for cash, will bring additional net proceeds of $3.7 million in cash to the Company. Following the above transaction, the Company will no longer have any outstanding warrants.

“We are pleased to further strengthen our balance sheet with $8.1 million from the exercise of these existing warrants that were already a consideration in our fully diluted capital structure,” said James A. Mish, chief executive officer of 22nd Century Group. “The capital will provide us with additional runway to further fuel our current operations, strategy, and growth initiatives including near-term opportunities in both our tobacco and hemp/cannabis franchises. We look forward to securing Modified Risk Tobacco Products (MRTP) authorization, launching VLN^®, and building the VLN^® brand. The additional cash will also support our hemp/cannabis R&D initiatives and the development of our third franchise in 2021.”

About 22nd Century Group, Inc.
22nd Century Group, Inc. (NYSE American: XXII) is a leading plant biotechnology company focused on technologies that alter the level of nicotine in tobacco plants and the level of cannabinoids in hemp/cannabis plants through genetic engineering, gene-editing, and modern plant breeding. 22nd Century’s primary mission in tobacco is to reduce the harm caused by smoking through the Company’s proprietary reduced nicotine content tobacco cigarettes – containing 95% less nicotine than conventional cigarettes. The Company’s primary mission in hemp/cannabis is to develop and commercialize proprietary hemp/cannabis plants with valuable cannabinoid profiles and desirable agronomic traits.

Learn more at xxiicentury.com, on Twitter @_xxiicentury, and on LinkedIn.

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. 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. 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 11, 2020, and in its subsequently filed Quarterly Report on Form 10-Q. 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:
Mei Kuo
Director, Communications & Investor Relations
22nd Century Group, Inc.
(716) 300-1221
mkuo@xxiicentury.com 

FAQ

What financial proceeds did XXII announce in March 2021?

XXII announced net proceeds of $8.1 million from warrant exercises.

How much additional cash could XXII potentially receive?

XXII could receive an additional $3.7 million if remaining warrants are exercised.

What will the funds from warrant exercises support for XXII?

The funds will support operations, strategy, and growth initiatives in tobacco and hemp/cannabis sectors.

What is the significance of the cash received by XXII?

The cash enhances XXII's balance sheet and provides resources to pursue MRTP authorization and expand R&D initiatives.