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, Inc. (NYSE American: XXII) has acquired Needle Rock Farms in Colorado, valued at $2.2 million, as part of a restructuring agreement with Panacea Life Sciences. The deal includes exchanging a $7 million note for ownership and a new $4.3 million note secured by Panacea’s operations building, appraised at $10.7 million. Additionally, $7 million in Series B Preferred Stock will be converted into 91 million shares of Exactus, Inc.. This strategic move aims to enhance 22nd Century's cannabis capabilities and generate revenue by the second half of 2021.
22nd Century Group (XXII) reported significant progress under CEO James A. Mish’s leadership in a recent shareholder update. Over the past year, shares have surged by 470%. The company is advancing its Modified Risk Tobacco Product (MRTP) application for the VLN® brand, which could allow for marketing claims of containing '95% Less Nicotine.' Additionally, strategic partnerships in the hemp/cannabis sector and a new Canadian subsidiary are expected to enhance growth. The company aims to capitalize on regulatory changes in tobacco and cannabis markets, with a total addressable market of $1.3 trillion.
22nd Century Group, Inc. (XXII) announced the successful completion of a registered direct offering, selling 10 million shares at $4.00 per share, yielding gross proceeds of $40 million. This capital infusion aims to support various strategic objectives across its plant franchises, including R&D expenses, capital expenditures, and commercialization efforts. The company is positioned to capitalize on recent initiatives in its hemp/cannabis franchise and anticipates continued momentum leading to the launch of its reduced nicotine tobacco product in the near future.
22nd Century Group (NYSE: XXII) announced its inclusion in the Russell 2000®, Russell 3000®, and Russell Global Indexes, effective June 28, 2021. This milestone is seen as a recognition of the company's growth and the confidence in its leadership. The firm aims to leverage its strengths in plant science to address the $1.3 trillion market opportunity across tobacco, hemp/cannabis, and a third plant-based franchise. The inclusion is expected to enhance visibility for investors in the tobacco harm reduction and hemp research sectors.
22nd Century Group (XXII) has announced strategic partnerships with leading plant breeders and a collaboration with Aurora Cannabis to enhance its hemp/cannabis initiatives. The company has established a Canadian subsidiary to expand its operations and aims to monetize its biosynthesis intellectual property in late 2021. A $40 million registered direct offering is expected to support growth initiatives. The firm is positioned to capitalize on stable cannabinoid levels in cannabis plants and is actively pursuing multiple revenue streams in its cannabis franchise.
22nd Century Group (NYSE American: XXII) announced a definitive agreement to sell 10 million shares at $4.00 each, totaling $40 million in gross proceeds. The offering targets strategic objectives, including research and development, capital expenditures, and commercialization. The financing, set to close around June 9, 2021, is facilitated by Cowen and Company, LLC. The net proceeds will support the company's plant franchises and its mission to reduce tobacco harm and enhance hemp/cannabis offerings.
22nd Century Group (NYSE American: XXII) announced its participation in several upcoming virtual investor conferences in May and June 2021. Key events include a fireside chat at the Stephens Food and Ag Disrupted Conference on May 26, a presentation at the Benzinga Cannabis Capital Conference on June 3, and participation in the 2021 LD Micro Invitational XI Conference on June 10. Investors can access live webcasts through the Company’s Investor Relations website and may request one-on-one meetings with representatives.
22nd Century Group (NYSE American: XXII) addresses health disparities from tobacco addiction, particularly in minority communities. At the FDLI Annual Conference on May 19, 2021, VP John Pritchard will discuss how reduced nicotine content in cigarettes could lower addiction rates. The need for FDA regulation is emphasized, including capping nicotine levels to create non-addictive products. The company’s VLN® King cigarettes meet this potential FDA mandate. Public health experts join the discussion, pushing for expedited actions to address nicotine's impact on health equity.
22nd Century reported Q1 2021 net sales of $6.8 million, comparable to $7.1 million in Q1 2020. The gross profit increased by 125% to $647,000, while the net loss expanded to $5.0 million from $4.0 million year-over-year. The FDA's review process for the Modified Risk Tobacco Product (MRTP) designation of its VLN® cigarettes is nearing conclusion, with plans for a commercial launch within 90 days post-authorization. Cash reserves improved to $30.9 million, supporting growth initiatives in tobacco and hemp/cannabis markets. The company anticipates a favorable regulatory environment for cannabis moving forward.
22nd Century Group (NYSE American: XXII) announced significant advancements in its testing capabilities, estimating a 90% reduction in costs and a turnaround time improvement from weeks to hours for its VLN® reduced nicotine tobacco products. The new in-house laboratory will enhance product quality and testing consistency while supporting the anticipated demand for VLN® cigarettes. In preparation for the FDA's Modified Risk Tobacco Product (MRTP) application, the company aims for ISO/IEC 17025 accreditation, demonstrating its commitment to high-quality testing standards.
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