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22nd Century Group (Nasdaq: XXII) Acquires GVB Biopharma, a Leading Hemp/Cannabis Company
Provides Transformational Platform to Rapidly Grow Hemp/Cannabis FranchiseTransaction Immediately Accretive and Will Double Company’s Total RevenueAdds
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Provides Transformational Platform to Rapidly Grow Hemp/Cannabis FranchiseTransaction Immediately Accretive and Will Double Company’s Total RevenueAdds Significant Commercial Scale to Existing Hemp/Cannabis FranchiseGVB Biopharma has Achieved Strong Growth and Leading Market Share in Hemp-Derived Active Ingredients BUFFALO, N.Y., May 13, 2022 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company dedicated to improving human health with reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technology, today announced the acquisition of privately held GVB Biopharma. As a contract development and manufacturing organization (CDMO), GVB is believed to be one of the largest providers of hemp-derived active ingredients for the pharmaceutical and consumer goods industries worldwide based on total tonnage. GVB has industry leading market positions and expertise in all facets of the hemp/cannabis industry, which include: Research and geneticsProprietary cryogenic hemp extractionRefining, conversion, and product formulation technologyLeading supplier of Active Pharmaceutical Ingredients (API)Low-cost, scalable manufacturing capabilitiesRegulatory and compliance expertiseIndustry trusted high-quality productsCurrent international capabilities GVB’s strengths complement 22nd Century’s existing upstream and downstream value chains, which includes expertise in cannabinoid receptor science with CannaMetrix, plant research and proprietary genetics through its KeyGene partnership, breeding expertise with Extractas, and cultivation capabilities at Needle Rock Farms. The combination with 22nd Century establishes a global one-of-a-kind asset to serve the rapidly growing hemp/cannabis ingredient market. GVB expects 2022 revenue of approximately $48 million, a 58% increase year-over-year, gross margin in excess of 44% and positive cash flow. Upon closing, the transaction is expected to more than double 22nd Century’s revenue, be immediately accretive to adjusted EBITDA, and generate positive cash flow from the acquired assets in the near term. James A. Mish, chief executive officer of 22nd Century Group, stated: “GVB represents a transformational acquisition for 22nd Century that will enable us to rapidly grow our hemp/cannabis franchise. GVB is one of the largest CBD suppliers globally, p...