22nd Century Group Completes Sale of Needle Rock Farms Assets

Rhea-AI Summary

22nd Century Group (NASDAQ: XXII) has completed the sale of its Needle Rock Farms assets for net proceeds of approximately $770,000 after expenses. The assets were previously related to the company's hemp cannabis business, which was divested in December 2023. CEO Larry Firestone stated that the proceeds will strengthen the company's cash position and support their 2025 revenue growth strategies, including new VLN® and Partner VLN® launches. The company will report its Q1 2025 results on May 13, 2025.

Positive

• Sale of unused Needle Rock Farms assets generates $770,000 in additional cash
• Company reports positive year-to-date revenue growth results
• Upcoming launches of new VLN® and Partner VLN® products

Negative

• Continued divestment of assets indicates strategic restructuring needs
• Relatively small cash proceeds from asset sale

Further Strengthens Balance Sheet Cash Position

MOCKSVILLE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine dependence and believes smokers should have a choice about their nicotine consumption, today announced closing of the sale of its Needle Rock Farms assets with net proceeds of approximately $770,000 after expenses.

“The sale of unused assets such as Needle Rock Farms which was related to the hemp cannabis business that was sold in December 2023, enables us to redeploy capital into our current growth plans,” said Larry Firestone, CEO of 22nd Century Group. “The additional $770,000 in cash increases our cash position which will fund our revenue growth strategies for 2025 that are already generating positive results year-to-date even before we see the benefit of our new VLN^® and Partner VLN^® launches.”

22nd Century will report its complete first quarter results on May 13, 2025, with a conference call the same day.

About 22nd Century Group, Inc.

22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.

We created our flagship product, the VLN^® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption. VLN^® cigarettes have 95% less nicotine than the traditional cigarette and have been proven to greatly reduce nicotine consumption. Instead of offering new ways of delivering nicotine to addicted smokers, we offer smokers the option to take control of their nicotine consumption and make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether.

Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN^® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combusted tobacco products annually with additional space for expansion.

Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with 95% less nicotine. Our extensive patent portfolio has been developed to ensure we have the only low nicotine combustible cigarette in the United States and critical international markets.

VLN^® and Helps You Smoke Less^® are registered trademarks 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. 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

How much did XXII receive from selling Needle Rock Farms assets?

22nd Century Group (XXII) received net proceeds of approximately $770,000 after expenses from the sale of Needle Rock Farms assets.

What will XXII use the proceeds from the Needle Rock Farms sale for?

The proceeds will be used to strengthen the company's cash position and fund their 2025 revenue growth strategies, including new VLN® and Partner VLN® launches.

When did XXII sell its hemp cannabis business?

22nd Century Group sold its hemp cannabis business in December 2023.

When will XXII report its Q1 2025 financial results?

22nd Century Group will report its first quarter 2025 results on May 13, 2025.