22nd Century Group Inc. - XXII STOCK NEWS

22nd Century Group, Inc. (Nasdaq: XXII) announced a registered direct offering, selling 17,073,175 shares of common stock at $2.05 per share, raising approximately $35 million. The offering includes unregistered warrants for the same number of shares, exercisable at $2.05, expiring five years post-issuance. Proceeds are earmarked for expanding the launch of VLN® reduced nicotine cigarettes, R&D, and corporate purposes. Notably, the offering exceeds market pricing, highlighting investor confidence.

22nd Century Group (Nasdaq: XXII) announces the pilot sales of VLN® cigarettes, which feature 95% reduced nicotine content, aligning with the FDA's proposed rule to reduce nicotine in all cigarettes. The pilot program, conducted in Circle K Stores in the Chicago area, shows strong interest among adult smokers seeking to manage their nicotine consumption. The FDA has granted Modified Risk Tobacco Product (MRTP) authorization, allowing VLN® to be marketed with claims such as 'Helps You Smoke Less'. The company aims for a national launch to assist the 70% of smokers who wish to quit.

22nd Century Group (Nasdaq: XXII) appointed R. Hugh Kinsman as CFO, expanding his role from GVB Biopharma, acquired in May 2022. CEO James A. Mish highlighted Kinsman's extensive financial experience and his contributions to integrating GVB into 22nd Century's operations. The company aims to advance its tobacco harm reduction strategies and enhance its hemp/cannabis franchise. Kinsman previously held senior executive roles and has a strong background in public company finance. 22nd Century focuses on reducing nicotine content in tobacco and improving health through plant biotechnology.

On May 27, 2022, 22nd Century Group, a leading agricultural biotechnology company focused on reducing nicotine tobacco and advanced plant technologies, announced investor meetings at two upcoming conferences in June 2022. The first event is the LD Micro Invitational XII on June 7, 2022, with a presentation scheduled for 8:00 a.m. PT at the Four Seasons Hotel in California. The second event is the 8th Annual Roth London Conference on June 22, 2022, held in London. Investors can schedule meetings through institutional representatives or by contacting the company's investor relations.

22nd Century Group (Nasdaq: XXII) has appointed John J. Miller to lead its reduced nicotine tobacco business. Miller brings over 35 years of experience in the tobacco industry, previously serving as CEO of Swisher International. His role will focus on accelerating revenue growth and market share, particularly with the launch of VLN®, the first FDA-approved reduced nicotine cigarette. The company aims to leverage Miller's expertise to enhance its position in the tobacco harm reduction sector.

22nd Century Group, Inc. (Nasdaq: XXII) announced the acquisition of GVB Biopharma, a leader in hemp-derived active ingredients, effective May 13, 2022. This integration is poised to double the company's revenue, projecting GVB’s 2022 revenue at approximately $48 million, a 58% year-over-year growth. The acquisition enhances 22nd Century’s capabilities in cannabinoid manufacturing and is expected to generate positive cash flow and adjusted EBITDA immediately. GVB holds an estimated 15% market share in hemp-derived active ingredients, bolstering 22nd Century’s footprint in global markets.

22nd Century Group (Nasdaq: XXII) announced the acquisition of GVB Biopharma, significantly enhancing its hemp/cannabis franchise. This strategic move is expected to double the company’s total revenue and provide significant commercial scale. GVB, a leader in hemp-derived active ingredients, projects 2022 revenue of approximately $48 million, representing a 58% year-over-year increase. The acquisition is immediately accretive to adjusted EBITDA and generates positive cash flow from the outset, positioning 22nd Century for robust growth in the rapidly expanding hemp market.

22nd Century Group (Nasdaq: XXII) reported a 33% year-over-year increase in first-quarter net sales, reaching $9.0 million, attributed to boosted contract manufacturing volumes. The company launched its VLN® reduced nicotine cigarettes in over 150 Circle K stores in Chicago and commenced international shipments to South Korea. The FDA's proposed menthol ban may position VLN® Menthol King as the sole menthol cigarette available, enhancing its market potential. However, operating loss increased to $(8.1) million, with total operating expenses rising significantly due to higher consulting and R&D costs.

22nd Century Group, Inc. (Nasdaq: XXII) supports the FDA's menthol cigarette ban, anticipating that its VLN® Menthol King reduced nicotine cigarettes will be exempted. This product contains 95% less nicotine than conventional cigarettes, helping smokers transition away from addiction. The FDA recognizes VLN® as integral to its public health mission, marking it as the only reduced nicotine menthol cigarette available. The company is positioned to capture market opportunities in a $80 billion industry, with menthol cigarettes comprising nearly 40% of U.S. sales.