Business
22nd Century Announces $5.3 Million Registered Direct Offering Priced Above Market
Company Eliminates At-the-Market Offering Program BUFFALO, N.Y., June 20, 2023 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a leading
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Company Eliminates At-the-Market Offering Program\nBUFFALO, N.Y., June 20, 2023 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a leading biotechnology company dedicated to improving health with reduced nicotine tobacco, hemp/cannabis and hops advanced plant technologies, today announced that it has entered into definitive agreements with certain investors for the purchase and sale of 11.2 million shares of common stock and warrants at a price of $0.47 per share in a registered direct offering priced above market. Gross proceeds to the Company from the registered direct offering are expected to be $5.3 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for the continued commercial expansion of its VLN® reduced nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes. “We have rapidly increased availability of our VLN® products to almost 1,100 stores across 14 states and counting over the past few weeks, with orders to exceed 2,500-plus stores in early July, and rapid growth above that figure for the rest of 2023,” said James A. Mish, Chief Executive Officer. “The store count trajectory is increasingly clear, with approximately 1,500 corporate stores at the #1 convenience store chain in the U.S. are coming online in early July, plus a growing list of that chain’s franchise locations across multiple states joining the launch on strong support from its franchise owners association and leadership. Further diversifying our store count, we have an expanding list of additional convenience, military and drug store chains already scheduling launch dates and markets throughout the rest of 2023. This rapid multi-state escalation means our working capital requirements are likewise accelerating quickly to support the continued success of the rollout, which we now expect will exceed our original 18 state target for 2023.” Mish continued, “In addition, our GVB business continues to post record ingredient volumes, supporting improved operating results driven by gross profit from our new extraction facility, the return of gross profit from our in-house distillate production capability at our new Prineville location, and the onset of ...