22nd Century Secures $9.5 Million Cash Proceeds from Settlement of Insurance Claim
22nd Century Group (Nasdaq: XXII) has secured a $9.5 million cash settlement from insurers for business interruption claims related to the November 2022 Grass Valley incident. The settlement payment must be made within 45 days of the agreement's effective date.
The company, now debt-free, views this non-dilutive capital as crucial for growth rather than survival. CEO Larry Firestone emphasized that after addressing legacy issues over the past 22 months, the company is positioned to achieve profitability in 2026.
22nd Century Group specializes in tobacco harm reduction through its proprietary non-GMO reduced nicotine tobacco plants, which contain 95% less nicotine than traditional tobacco. Their flagship product, VLN® cigarette, is the only FDA-authorized low nicotine combustible cigarette in the United States.
22nd Century Group (Nasdaq: XXII) ha ottenuto un indennizzo in contanti di 9,5 milioni di dollari dalle compagnie assicurative per le richieste di interruzione dell’attività relative all’incidente di Grass Valley di novembre 2022. Il pagamento dell’indennizzo deve essere effettuato entro 45 giorni dalla data di efficacia dell’accordo.
L’azienda, ora senza debiti, considera questo capitale non diluitivo cruciale per la crescita piuttosto che per la sopravvivenza. Il CEO Larry Firestone ha sottolineato che, dopo aver affrontato le questioni di eredità nei ultimi 22 mesi, l’azienda è posizionata per raggiungere la redditività nel 2026.
La 22nd Century Group si specializza nella riduzione dei danni da tabacco tramite le sue piante di tabacco non OGM a nicotina ridotta, che contengono il 95% in meno di nicotina rispetto al tabacco tradizionale. Il loro prodotto di punta, la sigaretta VLN®, è l’unica sigaretta combustibile a bassa nicotina autorizzata dalla FDA negli Stati Uniti.
22nd Century Group (Nasdaq: XXII) ha asegurado un acuerdo en efectivo de 9,5 millones de dólares con las aseguradoras por reclamaciones de interrupción de negocio relacionadas con el incidente Grass Valley de noviembre de 2022. El pago del acuerdo debe realizarse dentro de 45 días a partir de la fecha de entrada en vigor del acuerdo.
La empresa, que ahora está libre de deudas, ve este capital no dilutivo como crucial para el crecimiento en lugar de la supervivencia. El CEO Larry Firestone enfatizó que, tras abordar las cuestiones heredadas durante los últimos 22 meses, la empresa está posicionada para lograr rentabilidad en 2026.
22nd Century Group se especializa en la reducción de daños del tabaco mediante sus plantas de tabaco no-GMO con nicotina reducida, que contienen un 95% menos de nicotina que el tabaco tradicional. Su producto insignia, el cigarrillo VLN®, es el único cigarrillo combustión de baja nicotina autorizado por la FDA en Estados Unidos.
22nd Century Group (Nasdaq: XXII)가 보험사로부터 $9.5 million cash settlement를 확보했습니다. 이는 2022년 11월 Grass Valley 사건과 관련된 사업 중단 청구에 대한 것입니다. 합의금은 계약 발효일로부터 45일 이내에 지급되어야 합니다.
현재 부채가 없는 이 회사는 이 비희석 자본을 생존이 아닌 성장에 필수적이라고 보고 있습니다. CEO Larry Firestone는 지난 22개월 동안의 유산 문제를 해결한 후 회사가 2026년에 수익성을 달성할 수 있는 위치에 있다고 강조했습니다.
22nd Century Group은 고유의 비-GMO 감소된 니코틴 담배 식물을 통해 담배 위해 감소에 집중하고 있으며, 이 식물은 전통 담배에 비해 니코틴이 95% 적은 담배를 포함합니다. 그들의 주력 제품인 VLN® 담배는 미국에서 FDA가 승인한 유일한 저니코틴 연소 담배입니다.
22nd Century Group (Nasdaq: XXII) a obtenu un règlement en espèces de 9,5 millions de dollars auprès des assureurs pour des réclamations d’interruption d’activité liées à l’incident Grass Valley de novembre 2022. Le paiement du règlement doit être effectué dans les 45 jours suivant la date d’entrée en vigueur de l’accord.
L’entreprise, aujourd’hui sans dette, considère ce capital non dilutif comme crucial pour la croissance plutôt que pour la survie. Le PDG Larry Firestone a souligné qu’après avoir résolu les questions historiques au cours des 22 derniers mois, l’entreprise est en mesure d’atteindre la rentabilité en 2026.
22nd Century Group se spécialise dans la réduction des dommages liés au tabac grâce à ses plantes de tabac non-OGM à nicotine réduite, qui contiennent 95% de nicotine en moins que le tabac traditionnel. Leur produit phare, la cigarette VLN®, est la seule cigarette combustible à faible nicotine autorisée par la FDA aux États‑Unis.
22nd Century Group (Nasdaq: XXII) hat von Versicherern eine Barabfindung in Höhe von 9,5 Millionen US-Dollar für geschäftsunterbrechungsbedingte Ansprüche im Zusammenhang mit dem Grass Valley-Vorfall im November 2022 erhalten. Die Zahlung der Abfindung muss innerhalb von 45 Tagen nach Inkrafttreten der Vereinbarung erfolgen.
Das Unternehmen, schuldenfrei, sieht dieses nicht verwässernde Kapital als entscheidend für Wachstum statt Überleben. CEO Larry Firestone betonte, dass das Unternehmen nach der Bewältigung von Erbschaftsproblemen in den letzten 22 Monaten in die Lage versetzt ist, im Jahr 2026 Rentabilität zu erreichen.
Die 22nd Century Group ist auf die Risikominderung von Tabakkonsum durch firmeneigene nicht-GMO-Tabakpflanzen mit reduziertem Nikotin spezialisiert, die 95% weniger Nikotin als herkömmlicher Tabak enthalten. Ihr Flaggschiffprodukt VLN®-Zigarette ist die einzige FDA-zugelassene Low-Nicotine-Verbrennungzigarette in den USA.
22nd Century Group (Nasdaq: XXII) قد حصلت من شركات التأمين على تسوية نقدية قدرها 9.5 مليون دولار للمطالبات المتعلقة بتعطل الأعمال المرتبطة بحادث Grass Valley في نوفمبر 2022. يجب سداد دفعة التسوية خلال 45 يوماً من تاريخ سريان الاتفاق.
الشركة، التي أصبحت خالية من الدين، ترى أن هذا رأس المال غير المخفّض ضروري للنمو بدلاً من البقاء على قيد الحياة. وأكد الرئيس التنفيذي لاري فايرستون أنه بعد معالجة القضايا الموروثة خلال الـ22 شهراً الماضية، أصبحت الشركة في وضع يمكنها من تحقيق الربحية في 2026.
تتخصص 22nd Century Group في تقليل أضرار التبغ من خلال نباتاتها من التبغ المقلل للنِيكوتين وليس المعدَّل وراثياً، التي تحتوي على نِيكوتين أقل بنسبة 95% من التبغ التقليدي. منتجها الرائدVLN® هو السيجارة القابلة للاحتراق الأقل نيكوتين المعتمدة فقط من FDA في الولايات المتحدة.
22nd Century Group（纳斯达克：XXII） 已从保险公司获得 950万美元 的现金和解，用于与 2022 年 11 月 Grass Valley 事件相关的业务中断索赔。和解金须在协议生效之日后的 45 天 内支付。
公司现在无债务，认为这笔非稀释资本对增长至关重要，而非仅为生存。CEO Larry Firestone 强调，过去 22 个月解决遗留问题后，公司已处于在 2026 年实现盈利的位置。
22nd Century Group 通过其专有的非转基因、低尼古丁烟草植物进行烟草危害降低研究，这些烟草比传统烟草的尼古丁含量低 95%。其旗舰产品 VLN® 香烟是美国唯一经 FDA 授权的低尼古丁可燃烟。
- None.
- Extended timeline to profitability (not until 2026)
- Settlement payment subject to 45-day payment timeline
- Previous business interruption indicates operational risks
Insights
22nd Century's $9.5M insurance settlement provides critical non-dilutive capital, strengthening its debt-free balance sheet and supporting its path to profitability.
22nd Century Group has secured a significant
The timing of this capital infusion is particularly consequential. The company has recently achieved debt-free status, marking what management describes as a transition from "survival capital to growth capital." This
The settlement payment structure requires insurers to deliver the full amount within 45 days of the agreement's effective date, providing near-term liquidity without the dilution that would come from equity financing. For a company positioned in the specialized reduced-nicotine tobacco market, this capital strengthens their ability to expand distribution of their FDA-authorized VLN® cigarettes containing
This settlement effectively closes a nearly two-year chapter of financial uncertainty stemming from the business interruption event. With legacy financial issues now addressed, management can redirect focus toward operational execution and market expansion rather than capital preservation. The company's transition from balance sheet repair to growth execution represents a fundamental shift in its business trajectory as it works toward 2026 profitability targets.
Non-dilutive Cash Puts Growth Capital and Runway to Breakeven on the Balance Sheet
Company is Positioned to Drive to Profitability in 2026
MOCKSVILLE, N.C., Sept. 24, 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 it has reached an agreement to settle all claims for business interruption related to the Grass Valley incident that occurred in November 2022 for a one-time payment of
“We are very excited to close this chapter and finally settle with our insurance carrier for the full amount we targeted,” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “Additionally, because the Company is now debt free, this marks a major transition in the company as this is a shift from survival capital to growth capital. We have cleaned up our balance sheet over the past 22 months and after solving these legacy issues one at a time, we are now positioned to focus on the future and drive to profitability in 2026. We continue to work on expanding distribution for our branded products including our VLN® and partner VLN® products.”
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 in the Company’s Quarterly Reports filed 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
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