22nd Century Announces Debt-Free Balance Sheet and New Growth Capital
Rhea-AI Summary
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.
Positive
- 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
Negative
- Dilution from Series A convertible preferred stock offering
- Significant capital requirements for inventory expansion in Q4 2025
News Market Reaction – XXII
In the Sep 19 session, XXII gained 11.93%, reflecting a significant positive market reaction. Argus tracked a peak move of +24.9% during that session. Argus tracked a trough of -15.4% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 49.4x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
