22nd Century Group, Inc · NASDAQ:XXII
22nd Century — Merger or Acquisition (May 2022)
15 slides from 22nd Century's merger presentation, May 18, 2022
Slide 1: 22nd Century Group Acquires GVB Biopharma, a Leading Hemp/Cannabis Company
22ND CENTURY GROUP (NASDAQ: XXII) ACQUIRES GVB BIOPHARMA, A LEADING HEMP/CANNABIS COMPANY May 18, 2022 XXII
Slide 2: Cautionary Note on Forward-Looking Statements
CAUTIONARY NOTE ON FORWARD - LOOKING STATEMENTS This presentation contains forward - looking statements concerning our business operations, and financial performance and conditions, as well as our plans, objectives, and expectations for our business operations, and financial performance, and conditi
Slide 3: 22nd Century Acquires GVB Biopharma
22ND CENTURY ACQUIRES GVB BIOPHARMA GVB Biopharma (“GVB”) is a global leader in the manufacturing of hemp - derived active ingredients and finished products servicing the nutraceutical, consumer products and pharmaceutical industries. The acquisition of GVB provides 22nd Century a foundational platf
Slide 4: A Transformational Acquisition
A TRANSFORMATIONAL ACQUISITION Market Leadership in Hemp - Derived Products ▪ GVB is widely regarded as a best - in - class operator with an estimated 15% share of the hemp - derived active ingredients market ▪ Control from biomass to ingredients to finished goods ensuring attractive prices, quality
Slide 5: GVB Expands 22nd Century's Global Footprint
GVB EXPANDS 22ND CENTURY’S GLOBAL FOOTPRINT 5 GVB adds strong U.S. and international assets and capabilities Production, Manufacturing, & Distribution Sales, Marketing, & Administration Supply Chain Existing 22nd Century Footprint Australia Chile Europe China
Slide 6: Class-Leading Manufacturing Capabilities
CLASS - LEADING MANUFACTURING CAPABILITIES The Company currently operates : ▪ Grass Valley, Oregon : 30,000 sq ft; refinement facility ▪ Las Vegas, Nevada : 40,000 sq ft; used for Private Label/Contract Manufacturing ▪ Prineville, Oregon : Crude extraction capacity of 10,000 kg/month GVB sources hem
Slide 7: GVB Offers a Diverse Range of High-Quality Cannabinoids and Infused Products
GVB OFFERS A DIVERSE RANGE OF HIGH - QUALITY CANNABINOIDS AND CANNABINOID INFUSED PRODUCTS 7 White Label Contract Manufacturing Product Offering Tablets Topical Vape Pens Tinctures Gel Capsules Gummies Mints Cannabinoid Abbreviation Cannabidiol Isolate CBD Isolate Cannabidiol Broad Spectrum Distilla
Slide 8: Product Development Innovation Cycle
PRODUCT DEVELOPMENT INNOVATION CYCLE 8 3 rd Party Brands Consumer Insights & Partner Feedback Plants are tested in the field Plants are harvested and tested again The crude oil is distilled to remove impurities The extracted crude oil is lab tested for quality THC is removed using proprietary proces
Slide 9: GVB Completes 22nd Century's B2B Capabilities
GVB COMPLETES 22ND CENTURY’S B2B CAPABILITIES Plant Profile / Roadmap Plant Biotechnology Plant Breeding & Trials Plant Cultivation Ingredient Extraction, Purification, and Finished Products Commercial Partners CannaMetrix’s high - throughput proprietary, human cell - based assay technology serves a
Slide 10: Key Initial Hemp/Cannabis Programs
22nd Century is advancing a broad funnel of hemp/cannabis plant lines and IP designed to address specific industry needs. KEY INITIAL HEMP/CANNABIS PROGRAMS 10 Application Targeted Benefit Zero/Undetectable THC and High CBD Zero/Undetectable THC and High CBG Crop loss due to hemp going “hot” (exceed
Slide 11: 22nd Century and GVB Leadership Teams
22ND CENTURY AND GVB LEADERSHIP TEAMS 11 20+ years in the tobacco industry in global marketing, sales, operations, and business development Michael Zercher Chief Operating Officer 8+ years in the cannabis business in legal and executive roles, including corporate strategy, regulatory matters and gov
Slide 12: Globally Disruptive Plant-Science Driven Platform
GLOBALLY DISRUPTIVE PLANT - SCIENCE DRIVEN PLATFORM 12 Disruptive Plant Science and Intellectual Property TOBACCO The Only Combustible Modified Risk Tobacco Product CANNABIS Pharmaceutical CDMO and Best - In - Class Ingredients Platform Accelerating the Development of Proprietary Specialty Hop Varie
Slide 13: c Apa
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Slide 14: Transaction Highlights
TRANSACTION HIGHLIGHTS Transaction Considerations ▪ 22nd Century acquires all of the issued and outstanding shares of GVB Biopharma ▪ Pro forma ownership of approximately 17% GVB Biopharma and 83% 22nd Century Consideration to GVB Biopharma ▪ Aggregate consideration of approximately $58 million, inc
Slide 15: Contact Information
CONTACT INFORMATION 15 INVESTOR RELATIONS & MEDIA CONTACT Mei Kuo 22nd Century Group, Inc. Director, Communications & Investor Relations T: 716 - 300 - 1221 mkuo@xxiicentury.com Matt Kreps Darrow Associates Investor Relations T: 214 - 597 - 8200 mkreps@darrowir.com
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