22nd Century Secures $9.5 Million Cash Proceeds from Settlement of Insurance Claim
Rhea-AI Summary
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.
Positive
- None.
Negative
- Extended timeline to profitability (not until 2026)
- Settlement payment subject to 45-day payment timeline
- Previous business interruption indicates operational risks
News Market Reaction
On the day this news was published, XXII declined 4.43%, reflecting a moderate negative market reaction. Argus tracked a peak move of +53.6% during that session. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $347K from the company's valuation, bringing the market cap to $7M at that time. Trading volume was exceptionally heavy at 10.5x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
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
What is the size of 22nd Century Group's (XXII) insurance settlement in 2025?
When does 22nd Century Group (XXII) expect to become profitable?
What makes 22nd Century Group's (XXII) VLN cigarettes unique?
How will the $9.5M insurance settlement impact XXII's financial position?
When will XXII receive the insurance settlement payment?
