22nd Century Acquires Important Intellectual Property from the National Research Council of Canada & Announces Hiring of 10 N...
December 29 2014 - 9:15AM
Business Wire
22nd Century Group, Inc. (NYSE MKT: XXII) today announced that
on December 23, 2014, its wholly-owned subsidiary, 22nd Century
Limited, LLC, purchased strategically important intellectual
property (both patents and patent applications) from the National
Research Council of Canada (“NRC”) relating to the modification of
nicotine in the tobacco plant.
Including “transcription factor” technology and other
intellectual property that represents the Company’s extraordinary
second-generation gene technology for modifying the content of
nicotine (very low to high) and other nicotinic alkaloids in the
tobacco plant, the NRC intellectual property is the cornerstone of
the Company’s tobacco harm reduction products under development.
The unparalleled technology allows for the production of the
world’s lowest nicotine cigarette, up to 98% less nicotine than
that of “light” cigarettes, and the world’s lowest tar-to-nicotine
ratio cigarette.
By obtaining full ownership and control of the NRC intellectual
property to which the Company formerly had an exclusive worldwide
license, 22nd Century will settle in-full all outstanding monies
due to NRC and will no longer have to share with NRC any revenues
derived under the Company’s license to British American Tobacco
(“BAT”) and/or from the Company’s sales of tobacco and tobacco
products worldwide.
22nd Century’s President and Chief Operating Officer, Henry
Sicignano III stated, “This acquisition not only provides 22nd
Century with more operational flexibility through full control and
ownership of the NRC patent rights, it also promises savings of
potentially many millions of dollars in royalty fees. We are
tremendously pleased that Tom James, 22nd Century's General
Counsel, was able to negotiate this highly strategic
transaction.”
The Company agreed to pay NRC a total of $1,873,000 (USD) for
the purchase by the Company of such NRC intellectual property, of
which $873,000 was paid in cash by wire transfer by the Company to
NRC at the closing of this transaction on December 23, 2014, with
the remainder of the purchase price being payable by the Company to
NRC in three (3) annual installment payments of $333,333.33 on or
before December 22, 2015, $333,333.33 on or before December 22,
2016 and $333,333.34 on or before December 22, 2017.
Company Hires 10 New Employees at Mocksville, NC
Factory
To facilitate the January production and shipping of the
Company’s RED SUN® super-premium brand cigarettes, as well as the
contract manufacturing of the Smoker Friendly private label
cigarette brand, 22nd Century announced that its wholly-owned
subsidiary, NASCO Products, LLC, a federally licensed tobacco
product manufacturer and participating member of the tobacco Master
Settlement Agreement (MSA), today hired ten new full-time employees
at its manufacturing facility in Mocksville, North Carolina.
Each of the new hires comes to NASCO with years of cigarette
manufacturing experience. Barry Saintsing, NASCO Plant Manager and
former Master Product Developer at RJ Reynolds Tobacco Company,
stated “We have assembled an exceptional manufacturing team here at
the factory. All five production lines are up and running now and
we are eager to begin shipping product in January!”
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. The Company’s technology also
allows the levels of cannabinoids to be decreased or increased in
the cannabis plant. 22nd Century owns or is the exclusive licensee
of 128 issued patents plus an additional 53 pending patent
applications; 22nd Century also holds co-exclusive rights to
another 2 patents and 16 patent applications. Goodrich Tobacco
Company, LLC, Hercules Pharmaceuticals, LLC and Botanical Genetics,
LLC are wholly-owned subsidiaries of 22nd Century. Goodrich Tobacco
is focused on commercial tobacco products and potentially less
harmful cigarettes. Hercules Pharmaceuticals is focused on X-22, a
prescription smoking cessation aid in development. Botanical
Genetics is focused on novel cannabis plant varieties and on
cannabis-based products.
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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