22nd Century Group Closes $10 Million Private Placement
September 18 2014 - 6:50AM
Business Wire
22nd Century Group, Inc. (NYSE MKT:XXII) announced today that it
has closed a private placement with Crede CG III, Ltd (Crede),
pursuant to which 22nd Century sold 3,871,767 shares of restricted
stock for the purchase price of $10,000,000. The pricing was
determined by the 3-day volume-weighted average price (VWAP) from
September 10 through 12. Proceeds of the financing will be used to
conduct exposure studies, product launches, acquisitions, potential
joint ventures, and for general working capital purposes.
As one of the largest shareholders of the Company, Crede
continues to demonstrate its long-term investment horizon by
investing new money in restricted common stock of 22nd Century
Group at current market prices – without a discount.
Joseph Pandolfino, Founder and CEO of 22nd Century Group,
stated, “Crede has been a long-term shareholder and is assisting
the Company in achieving its strategic objectives. Additionally,
Crede has been instrumental in our Asian strategic initiatives and
we are hopeful these lead to attractive opportunities for 22nd
Century in the coming weeks.”
“The proceeds from this private placement will greatly
strengthen our balance sheet. Further, the funds will facilitate
several R&D catalysts as well as the achievement of
revenue-generating milestones,” explained John T. Brodfuehrer, 22nd
Century’s CFO. He added, “I expect the coming months to be very
exciting for our shareholders.”
Chardan Capital Markets, LLC acted as the exclusive placement
agent in this transaction.
For additional information, please visit:
www.xxiicentury.com
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company whose proprietary
technology through genetic engineering and plant breeding allows
(i) the level of nicotine (and other nicotinic alkaloids) in the
tobacco plant to be decreased or increased and (ii) the levels of
cannabinoids to be decreased or increased in addition to the
cannabinoid profile being tailored. 22nd Century owns or is the
exclusive licensee of 129 issued patents in 78 countries plus an
additional 51 pending patent applications, and 22nd Century has
co-exclusive rights to another 16 patent applications. Goodrich
Tobacco is focused on commercial tobacco products and potential
less harmful cigarettes. Botanical Genetics is focused on natural,
safe and effective cannabis-based products for human health,
well-being and nutrition, in addition to industrial products
refined from cannabis. 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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