Business
22nd Century Announces Closing of $40 Million Common Stock Registered Direct Offering
Financing Provides Support to the Company’s Strategic Objectives Across All Its Plant Franchises. BUFFALO, N.Y., June 09, 2021 (GLOBE NEWSWIRE) -- 22nd
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Financing Provides Support to the Company’s Strategic Objectives Across All Its Plant Franchises.\nBUFFALO, N.Y., June 09, 2021 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NYSE American: XXII), a leading plant-based biotechnology company focused on tobacco harm reduction, reduced nicotine tobacco, and hemp/cannabis research, today announced that it closed the previously announced sale of 10 million shares of its common stock at a purchase price of $4.00 per share in a registered direct offering for gross proceeds of $40 million. “This straight common equity financing will accelerate our ongoing strategic objectives and enable us to continue to advance across each of our three plant franchises. With our recently announced initiatives to strengthen and maximize multiple revenue opportunities in our hemp/cannabis franchise, we are now squarely positioned in the mainstream of the cannabis equity space,” said James A. Mish, chief executive officer of 22nd Century Group. “We look forward to continued momentum in all of our franchises including the monetization of key patented technology in the second half of this year, announcement of our breeding partnerships, and the launch of VLN® 90 days after securing Modified Risk Tobacco Product (MRTP) designation.” The net proceeds of the financing will be used to support the Company’s strategic objectives across all of its plant franchises. More specifically, 22nd Century intends to use the net proceeds for research and development expenses, capital expenditures, procurement and development of additional intellectual property rights, commercialization of its product portfolio, working capital, and general corporate purposes. Cowen and Company, LLC acted as the sole placement agent for this transaction. The Special Equities Group, a division of Dawson James Securities Inc., acted as financial advisor to the company. A registration statement on Form S-3 relating to shares of common stock described above was filed with the Securities and Exchange Commission (the “SEC”) and is effective. The offering is being made by means of a prospectus supplement to the prospectus contained in the registration statement. Copies of the final prospectus supplement and accompanying base prospectus may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, you may contact inve...