Business
22nd Century Group Provides Update on Grass Valley Facility
Customer shipments continue uninterrupted, expects to resume production within weeks Buffalo, New York--(Newsfile Corp. - December 8, 2022) - GVB Biopharma, a
About this update from 22nd Century Group, Inc
[{"type":"text","content":"Customer shipments continue uninterrupted, expects to resume production within weeks\nBuffalo, New York--(Newsfile Corp. - December 8, 2022) - GVB Biopharma, a 22nd Century Group company (NASDAQ: XXII), today provided updates on its operational recovery progress and customer shipments following a fire that occurred at its distillate and isolate manufacturing facility located in Grass Valley, Oregon, on November 20, 2022.\nThe Company has opened a new logistics hub at an existing company facility in nearby Tygh Valley, OR and production space nearby in an existing lab facility that is established, permitted and expected to be online within weeks. All customer shipments continue delivery as planned.\n\"Our team moved immediately upon learning of the fire to implement existing contingency plans to ensure our employees were safe, coordinate with first responders and maintain uninterrupted customer shipments. These plans will also enable our team to replace our Central Oregon distillate and isolate capabilities within a matter of weeks,\" said James A. Mish, chief executive officer of 22nd Century Group. \"We have connected with all of our major customers to ensure orders are delivered on time and are maintaining our revenue expectations for the foreseeable future.\"\nThe fire damaged the refinement facility at the Grass Valley location, requiring all hemp refining operations on site to be curtailed. Additional equipment and inventory stored in adjacent buildings was not damaged and will be relocated to nearby facilities as part of the Company's business continuity plans. The Company has commenced the insurance claims process and expects that losses resulting from the fire will be covered by its property and business interruption policies.\nSaid Mish, \"As an enterprise, we had extensive backup plans in place to ensure customers continue to receive product deliveries uninterrupted plus multiple options already identified to quickly resume production of our distillate and isolate products. We have incremental equipment readying to ship from our manufacturer plus undamaged equipment that was not presently installed at our Grass Valley site. We are diverting that finished equipment to a nearby facility and expect to install in a matter of weeks. While we are bringing that facility online, we are utilizing inventory and can source ingred...