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 (NASDAQ: XXII) announced an agreement with Nico-Tech Korea for a full-scale commercial rollout of its VLN® reduced nicotine content cigarettes in South Korea.
The decision follows a 2022 pilot test that led to product adjustments to match local preferences. CEO Larry Firestone highlighted South Korea's unique market with high smoking rates and governmental efforts to reduce smoking harms.
VLN® export shipments are expected to begin later this year, with a full launch event planned for Fall 2024. Nico-Tech will handle local marketing and meet minimum order quantities for distribution. South Korea's tobacco market is valued at an estimated $1.6 billion annually, with high smoking prevalence among adult men and a smaller percentage among adult women.
22nd Century Group (NASDAQ: XXII), a company specializing in nicotine harm reduction and contract manufacturing, has announced its participation in the Emerging Growth Virtual Conference scheduled for July 17, 2024. The presentation will take place at 11:25 AM Eastern Time and can be accessed through their events page online. Viewers may submit questions in advance to Questions@EmergingGrowth.com. This event highlights the company's ongoing efforts to engage with investors and showcase their initiatives in the tobacco industry.
22nd Century Group (NASDAQ: XXII) announced a $1.5 million reduction in its secured debt following a payment from GVB. This payment stems from a promissory note linked to GVB's acquisition of 22nd Century's hemp/cannabis assets in December 2023. Consequently, the remaining $500,000 debt has been extended to December 31, 2024. CEO Larry Firestone highlighted that this repayment contributes to a reduction in total outstanding debt and obligations to $8.3 million from $15.8 million at the end of 2023, significantly lowering both cash and non-cash interest expenses.
22nd Century Group (NASDAQ: XXII) announced that John Miller will resign as President of Tobacco, effective August 2, 2024. Miller was instrumental in launching the VLN® product, which reached over 5,000 stores across 26 states. He also expanded the company's contract manufacturing operations, notably the Pinnacle store brand for a major convenience store chain. CEO Larry Firestone expressed gratitude for Miller's contributions, stating that the company is well-positioned to continue its growth trajectory.
22nd Century Group (NASDAQ: XXII) reported its financial results for Q1 2024, showing major improvements compared to the previous periods. Net revenue from continuing operations reached $6.5 million, focusing on higher margin products. The company significantly reduced its cash used in operations to $2.3 million from $17.5 million year-over-year. Gross profit was reported at $(1.1) million due to one-time charges. Operating expenses fell to $3.3 million from $10.4 million in Q1 2023. Net loss decreased to $5.5 million, and adjusted EBITDA showed a loss of $3.5 million, both improved from the previous year. The company strengthened its balance sheet by increasing its cash position to $4.8 million and reducing debt by $8.0 million through equity exchanges.
22nd Century Group, Inc. (NASDAQ: XXII) announced the elimination of $2.3 million in debt with JGB Capital through a binding agreement. The company will exchange debt for approximately 1.375 million shares of common stock and pre-funded warrants, defer principal repayment until August 2024, and aims to achieve cash flow positivity by Q1 2025. The deal strengthens the balance sheet and supports commercial initiatives, including new contracts driving sales growth.
22nd Century Group, Inc. (XXII) will participate in the Aegis Capital Virtual Conference on May 9, 2024, focusing on nicotine harm reduction. The presentation will be held at 2:30 PM Eastern Time. Investors can access the live event online through the provided link.
22nd Century Group, Inc. (XXII) will announce its 2024 first quarter results on May 15, 2024, with a live webcast featuring the chairman and CEO Larry Firestone and CFO Dan Otto. The company focuses on tobacco harm reduction for health and wellness. The webcast will include financial reviews, progress updates, and a Q&A session.
22nd Century Group, Inc. (NASDAQ: XXII) eliminates $5.2 million of debt through an above-market equity transaction, enhancing the balance sheet, reducing interest expenses, and increasing shareholder equity. The company exchanged cash, common stock, and warrants with Omnia, aiming to become cash positive by Q1 2025. The transaction, detailed in an 8-K filing, restricts Omnia from owning more than 19.99% of common stock outstanding.
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