Business
22nd Century Eliminates an Additional $2.3 Million of Debt
Continues to Improve Balance Sheet and Move Toward Cash Positive Operations Mocksville, North Carolina--(Newsfile Corp. - May 13, 2024) - 22nd Century Group,
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Continues to Improve Balance Sheet and Move Toward Cash Positive Operations\nMocksville, North Carolina--(Newsfile Corp. - May 13, 2024) - 22nd Century Group, Inc. (NASDAQ: XXII), a tobacco products company focused on nicotine harm reduction, today announced that it has entered into a binding letter of agreement to eliminate an additional $2.3 million in outstanding debt with JGB Capital.\nUnder the terms of the agreement, the Company and JGB Capital will exchange an aggregate of $2.3M in principal, fees and expenses owed to JGB Capital for consideration of approximately 1.375 million shares of the Company's common stock and pre-funded warrants. Additionally, the Company will defer monthly amortization payments for an additional two months, resulting in no required further principal repayment until August 2024.\nSaid Larry Firestone, Chairman and CEO: \"This agreement with JGB is another significant step in restoring strength to our balance sheet as we work toward becoming debt free. This transaction also preserves our cash resources for commercial use as we work to become cash flow positive by the first quarter of 2025. We have made substantial progress on our commercial programs, including refining our revenue mix, implementing a lean operating cost profile and positioning the Company to win new contracts, including the new CMO and distribution agreements announced recently, which are already advancing our sales in the second quarter.\"\n\"We thank JGB for being a constructive debtholder in helping us to negotiate this resolution and is a significant new equity holder in 22nd Century Group,\" added Firestone.\nThe details of the Company's transactions can be found in an 8-K filed with the Securities and Exchange Commission on May 10, 2024.\nThe shares of common stock, the pre-funded warrants, the newly issued warrants and shares issuable upon conversion are being issued in a private placement and were exempt from registration under the Securities Act of 1933, as amended, in reliance on Section 4(a)(2) thereof as a transaction not involving a public offering and/or Rule 506 of Regulation D promulgated thereunder.\nThis press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities discussed herein, nor shall there be any offer, solicitation, or sale of the securities in any state in w...