22nd Century Group Comments on Misleading and Inaccurate Article
August 27 2014 - 3:20PM
Business Wire
22nd Century Group, Inc. (NYSE MKT:XXII) noted there was unusual
trading volume today in its common stock. The activity appears to
be related to an inaccurate article published today by a short
seller of the Company’s stock recommending that stockholders sell
22nd Century Group stock.
The author disclosed on the front page that he is “short” the
Company’s stock, meaning that the short seller author stands to
realize significant profit in the event that the share price of
22nd Century declines.
Although 22nd Century does not normally respond to false
information written about the Company, 22nd Century Group
management believes the degree of false information contained in
the subject article warranted a Company response.
22nd Century strongly disagrees with the article’s incorrect
assumptions and false conclusions. Although the misleading and
inaccurate statements are too numerous to address, the following
are a few examples:
1. “They have quadrupled the stock's
share count to roughly 59 million.” In fact, 22nd Century Group
went public in January 2011 with approximately 27 million shares.
Currently the Company has approximately 59 million shares
outstanding, not the 108 million alleged by the author. 2.
The author asserts that 22nd Century is in default of a license
agreement with a major university. This is patently false. Further,
just today, 22nd Century signed a new license agreement with the
same university that the author falsely alleges that the Company is
in default with. 3. Contrary to the author’s assertions
regarding stock promotion and sales, officers and insiders have
never engaged in stock promotion and have made minimal sales of
22nd Century Group common stock; in fact, management and insiders
retain more than 95% of their Company common stock. Collectively,
officers of the Company directly and beneficially own approximately
28% of the total outstanding shares. 4.
Contrary to the author’s assertions, 22nd
Century has never abandoned any of its products. The Company is
continuing its efforts to develop X-22, a cigarette intended for
use as a prescription smoking cessation aid, and has an active
investigational new drug application with the FDA. Various
independent clinical studies continue to validate the efficacy of
the Company’s products for harm reduction and smoking
cessation.
Henry Sicignano III, the Company’s President, explained, “22nd
Century’s commercial prospects have never been stronger. MSA
authorization is imminent. Hundreds of tobacco retailers have
expressed interest in carrying the Company’s super-premium RED SUN®
brand. The Company is launching MAGIC ZERO at the Dortmund
(Germany) International Tobacco Fair in September. And, as
previously announced, the Company is exploring important joint
venture opportunities in Asia.”
“The 22nd Century management team operates our Company with the
absolute highest integrity,” said Joseph Pandolfino, Founder and
Chief Executive Officer. “I have devoted the last 15 years of my
life and essentially my entire net worth to 22nd Century. The issue
I had with the SEC 23 years ago, when I was a kid in college, has
given me the highest sense of awareness for securities laws and
regulations. I would hope that the SEC investigates the author of
the disparaging article on 22nd Century and other ‘short and
distort’ authors. It is unfortunate that malicious articles by
short sellers dupe and scare investors into selling.”
For additional information, please visit:
www.xxiicentury.com
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company whose proprietary
technology allows for the levels of nicotine and other nicotinic
alkaloids (e.g., nornicotine, anatabine and anabasine) in the
tobacco plant to be decreased or increased through genetic
engineering and plant breeding. 22nd Century owns or is the
exclusive licensee of 129 issued patents in 78 countries plus an
additional 44 pending patent applications. Goodrich Tobacco
Company, LLC and Hercules Pharmaceuticals, LLC are wholly-owned
subsidiaries of 22nd Century. Goodrich Tobacco is focused on
commercial tobacco products and potential less harmful cigarettes.
Hercules Pharmaceuticals is focused on X-22, a prescription smoking
cessation aid in development.
Cautionary Note Regarding Forward-Looking Statements: This press
release contains forward-looking information, including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of 22nd Century Group, Inc.,
its directors or its officers with respect to the contents of this
press release. The words “may,” “would,” “will,” “expect,”
“estimate,” “anticipate,” “believe,” “intend” and similar
expressions and variations thereof are intended to identify
forward-looking statements. We cannot guarantee future results,
levels of activity or performance. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date that they were made. These cautionary statements should
be considered with any written or oral forward-looking statements
that we may issue in the future. Except as required by applicable
law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform
these statements to reflect actual results, later events or
circumstances, or to reflect the occurrence of unanticipated
events. You should carefully review and consider the various
disclosures made by us in our annual report on Form 10-K for the
fiscal year ended December 31, 2013, filed on January 30, 2014,
including the section entitled “Risk Factors,” and our other
reports filed with the U.S. Securities and Exchange Commission
which attempt to advise interested parties of the risks and factors
that may affect our business, financial condition, results of
operation and cash flows. If one or more of these risks or
uncertainties materialize, or if the underlying assumptions prove
incorrect, our actual results may vary materially from those
expected or projected.
Redington, Inc.Tom Redington, 203-222-7399
22nd Century (AMEX:XXII)
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