22nd Century Group Further Reduces Debt by $1.0 Million Following Financing Transaction
Rhea-AI Summary
22nd Century Group (NASDAQ: XXII) has announced an additional $1.0 million debt reduction to its senior lender, bringing its total debt principal to approximately $3.9 million. Year to date, the company has achieved a total debt reduction of about $3.8 million. CEO Larry Firestone highlighted that total debt obligations have decreased significantly from approximately $20 million in December 2023 when he joined the company. The tobacco products company aims to become debt-free to focus resources on growth opportunities in contract manufacturing, reduced nicotine content, and branded products. The company will report its Q1 2025 results on May 13, 2025.
Positive
- Significant debt reduction of $1.0 million, lowering total debt principal to $3.9 million
- Total debt reduced by approximately $16.1 million since December 2023 (from $20 million)
- Year-to-date debt reduction of $3.8 million shows consistent progress in improving financial health
Negative
- Company still carries $3.9 million in remaining debt
News Market Reaction
On the day this news was published, XXII gained 5.04%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Year to Date Total Debt Reduction of approximately
MOCKSVILLE, N.C., May 07, 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 that has repaid an additional
“Our debt reduction progress has been outstanding and total debt principal is now less than
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
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
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
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