22nd Century Announces Debt-Free Balance Sheet and New Growth Capital
22nd Century Group (Nasdaq: XXII) has announced a significant financial milestone by becoming debt-free after repaying its remaining $3.9 million senior secured debt following the completion of its Series A convertible preferred stock offering. The company has eliminated over $20 million in senior secured and subordinated debt under CEO Larry Firestone's leadership.
The financial restructuring has resulted in an approximate $9.1 million increase in adjusted pro forma net tangible book value ($1.05 per share). The company plans to utilize its capital to expand its very low nicotine tobacco leaf inventory in Q4 2025, with capacity to produce over 1 million cartons of VLN combustible products. The company's VLN® cigarettes, containing 95% less nicotine than traditional cigarettes, remain the only FDA-authorized low nicotine combustible cigarette in the United States.
22nd Century Group (Nasdaq: XXII) ha annunciato un importante traguardo finanziario diventando debt-free dopo aver rimborsato il restante debito garantito senior di 3,9 milioni di dollari, a seguito del completamento dell'offerta di azioni privilegiate convertibili di Serie A. L'azienda ha eliminato oltre 20 milioni di dollari di debiti garantiti senior e subordinati sotto la guida del CEO Larry Firestone.
La ristrutturazione finanziaria ha comportato un incremento di circa 9,1 milioni di dollari nel valore contabile netto tangibile pro forma rettificato ($1,05 per azione). L'azienda intende utilizzare il proprio capitale per espandere il suo inventario di foglie di tabacco a bassissimo contenuto di nicotina nel quarto trimestre 2025, con capacità di produrre oltre 1 milione di cartoni di prodotti VLN combustibili. Le sigarette VLN® dell'azienda, contenenti 95% in meno di nicotina rispetto alle sigarette tradizionali, rimangono l'unica sigaretta combustibile a bassa nicotina autorizzata dalla FDA negli Stati Uniti.
22nd Century Group (Nasdaq: XXII) ha anunciado un hito financiero significativo al convertirse en libre de deudas tras reembolsar su restante deuda garantizada senior de 3,9 millones de dólares tras la finalización de su oferta de acciones preferentes convertibles de Serie A. La empresa ha eliminado más de 20 millones de dólares en deudas garantizadas senior y subordinadas bajo la dirección del CEO Larry Firestone.
La reestructuración financiera ha resultado en un aumento de aproximadamente 9,1 millones de dólares en el valor contable neto tangible pro forma ajustado ($1,05 por acción). La empresa planea utilizar su capital para ampliar su inventario de hojas de tabaco con muy bajo contenido de nicotina en el cuarto trimestre de 2025, con capacidad para producir más de 1 millón de cajetillas de productos VLN combustibles. Los cigarrillos VLN de la empresa, que contienen un 95% menos de nicotina que los cigarrillos tradicionales, siguen siendo el único cigarrillo combustible de baja nicotina autorizado por la FDA en Estados Unidos.
22nd Century Group (나스닥: XXII)가 시리즈 A 상용주식의 전환 가능 우선주 발행 완료 후 남아있던 390만 달러의 선순위 담보부채를 상환하고 빚이 없는 상태가 되었다는 중요한 재무 이정표를 발표했습니다. 이 회사는 CEO Larry Firestone의 리더십 아래 2000만 달러가 넘는 선순위 담보부채와 종속채무를 모두 청산했습니다.
재무 구조 조정으로 조정된 프로 포마(net tangible book value) 순자산가치가 약 910만 달러 증가했고 주당 1.05달러에 해당합니다. 회사는 2025년 4분기에 자본을 활용해 매우 낮은 니코틴 함량의 담배 잎 재고를 확충하고 VLN 연소성 제품을 100만 카톤 이상 생산할 수 있는 능력을 갖추려 합니다. 회사의 VLN® 담배는 니코틴이 전통적인 담배보다 95% 적으며, 미국에서 FDA가 승인한 저니코틴 연소성 담배 중 유일한 제품입니다.
22nd Century Group (Nasdaq: XXII) a annoncé une étape financière majeure en devenant sans dette après avoir remboursé son dette garantie senior de 3,9 millions de dollars restante, suite à l’achèvement de l’offre d'actions privilégiées convertibles de série A. L’entreprise a éliminé plus de 20 millions de dollars de dettes garanties senior et subordonnées sous la direction du PDG Larry Firestone.
La restructuration financière a entraîné une augmentation d’environ 9,1 millions de dollars de la valeur comptable tangible nette pro forma ajustée (1,05 $ par action). L’entreprise prévoit d’utiliser son capital pour accroître son stock de feuilles de tabac à très faible teneur en nicotine au cours du quatrième trimestre 2025, avec une capacité de production de plus d’un million de paquets de produits VLN. Les cigarettes VLN® de l’entreprise, contenant 95 % de nicotine en moins que les cigarettes traditionnelles, restent la seule cigarette combustible à faible nicotine autorisée par la FDA aux États-Unis.
22nd Century Group (Nasdaq: XXII) hat einen bedeutenden finanziellen Meilenstein angekündigt, indem es schuldenfrei geworden ist, nachdem es seine verbleibende 3,9 Mio. USD schwere, besicherte Senior-Schuld beglichen hat, nach Abschluss des Series-A-Konvertiblen-Vorzugsaktienangebots. Das Unternehmen hat unter der Führung von CEO Larry Firestone über 20 Mio. USD an gesicherten Senior- und nachrangigen Schulden getilgt.
Die finanzielle Umstrukturierung hat eine ungefähre Erhöhung des bereinigten Pro-Forma-netten greifbaren Buchwerts um 9,1 Mio. USD zur Folge (1,05 USD pro Aktie). Das Unternehmen plant, sein Kapital zu nutzen, um seinen Bestand an Tabakblättern mit sehr niedrigem Nikotingehalt im vierten Quartal 2025 zu erweitern und die Fähigkeit zu schaffen, über eine Million Kartons VLN-Verbrauchsprodukte zu produzieren. Die VLN®-Zigaretten des Unternehmens, die 95 % weniger Nikotin enthalten als herkömmliche Zigaretten, bleiben die einzige von der FDA genehmigte Zigaretten mit niedrigem Nikotingehalt in den Vereinigten Staaten.
22nd Century Group (ناسداك: XXII) أعلنت عن علامة مالية هامة بأن تصبح خالية من الدين بعد سداد ديون مضمونة senior بقيمة 3.9 مليون دولار المتبقية عقب إتمام عرض الأسهم الممتازة القابلة للتحويل من الفئة A. الشركة أزالت أكثر من 20 مليون دولار من الديون المضمونة Senior والديون الثانوية تحت قيادة الرئيس التنفيذي لاري فايرستون.
أدى إعادة الهيكلة المالية إلى زيادة تقريبة قدرها 9.1 مليون دولار في القيمة الدفترية الملموسة المعدلة على أساس pro forma (1.05 دولار للسهم). تخطط الشركة لاستخدام رأسمالها لتوسيع مخزونها من أوراق التبغ ذات النيكوتين المنخفض جدًا في الربع الرابع من 2025، مع قدرة على إنتاج أكثر من 1 مليون علبة من منتجات VLN القابلة للاشتعال. السجائر VLN® للشركة، التي تحتوي على نِيكوتين أقل بنسبة 95% من السجائر التقليدية، تظل السجائر القابلة للاشتعال منخفضة النيكوتين الوحيدة المعتمدة من FDA في الولايات المتحدة.
22nd Century Group (纳斯达克：XXII)宣布在完成其A系列可转换优先股发行后，偿还剩余的 390万美元高级有担保债务 并实现无债务的重大财务里程碑。公司在CEO Larry Firestone的领导下，已清除超过 2000万美元的高级有担保债务和次级债务。
此次财务重组使经调整的并表后净有形资产值大约增加 910万美元（每股1.05美元）。公司计划在2025年第四季度利用资本，扩大极低尼古丁含量烟叶库存，具备生产超过 100万箱VLN可燃产品 的能力。公司的VLN®香烟的尼古丁比传统香烟少 95%，仍然是美国唯一获FDA批准的低尼古丁可燃香烟。
- Complete elimination of $3.9 million senior secured debt, resulting in debt-free balance sheet
- $9.1 million increase in adjusted pro forma net tangible book value ($1.05 per share)
- Production capacity expansion to over 1 million cartons of VLN products
- Branded product shipments commenced in Q3 2025 with expected margin expansion
- Strong IP portfolio with proprietary non-GMO reduced nicotine tobacco technology
- Dilution from Series A convertible preferred stock offering
- Significant capital requirements for inventory expansion in Q4 2025
Insights
22nd Century eliminated all debt, improving financial flexibility to support VLN tobacco product expansion after successfully raising growth capital.
22nd Century Group has achieved a significant financial milestone by completely eliminating its debt, repaying the final
This debt elimination delivers multiple financial benefits: it immediately reduces cash interest expenses and amortization costs, improves balance sheet strength, and frees up capital for growth initiatives. The company's completion of its Series A convertible preferred stock offering has increased its pro forma net tangible book value by approximately
The newly strengthened balance sheet positions 22nd Century to execute its strategic priorities, particularly expanding production of its FDA-authorized VLN® reduced nicotine cigarettes. Management has specifically indicated plans to allocate capital toward building very low nicotine tobacco leaf inventory in Q4 2025, with reserves sufficient to produce over 1 million cartons of VLN products.
The timing of this financial restructuring aligns with the company's commercial progress, as they've begun shipping branded products in Q3 2025 which are expected to deliver margin expansion. The debt-free status gives management substantially more financial flexibility to pursue its growth strategy into 2026, including expanded adoption of partner VLN products and the introduction of additional branded SKUs.
Repayment of
Company Balance Sheet Reflects Working Capital to Support the Purchase of Low Nicotine Leaf Crop for Production of More Than 1 Million Cartons of VLN Products
MOCKSVILLE, N.C., Sept. 18, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only tobacco products company that has for 27 years led and continues to lead the fight against the harms of smoking driven by nicotine addiction, today announced that following closing of its Series A convertible preferred stock offering, it has repaid the remaining
“We are pleased to remove one of the last legacy liabilities from the previous 22nd Century organization,” said Larry Firestone, Chief Executive Officer. “This is a huge step forward for the company, having now eliminated greater than
Completion of the Series A convertible preferred stock offering and senior secured debt repayment resulted in an approximate
About 22nd Century Group, Inc.
22nd Century Group is pioneering the tobacco harm reduction movement by enabling smokers to take control of their nicotine consumption.
Our Technology is Tobacco
Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains
Our Products
We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have
FDA Authorized
Our VLN® cigarette is the only low nicotine combustible cigarette authorized by the FDA in the United States.
VLN® is a registered trademark of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 20, 2025 and Quarterly Reports on Form 10-Q on May 13, 2025 and August 14, 2025. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
mkreps@xxiicentury.com
214-597-8200
FAQ
What did 22nd Century Group (XXII) announce about its debt repayment in September 2025?
How much has 22nd Century Group (XXII) reduced its total debt under current management?
What is the production capacity for VLN products after 22nd Century's Q4 2025 inventory expansion?
How much nicotine reduction does 22nd Century's VLN cigarette achieve compared to traditional cigarettes?
What is the impact of 22nd Century's Series A convertible preferred stock offering on book value?
