22nd Century Group Closes $54 Million Common Stock Only Registered Direct Offering
October 11 2017 - 9:55AM
Business Wire
More than 5 years of operating capital greatly
improves Company’s strategic position with potential industry
partners
22nd Century Group, Inc. (NYSE American:XXII), a plant
biotechnology company focused on tobacco harm reduction, announced
today that the Company has closed a registered direct common stock
offering with institutional investors to receive approximately $54
million in gross proceeds through the sale of 20.57 million shares
of common stock at a price of $2.625 per share.
The net proceeds of the financing will be used for general
corporate purposes, including working capital, as the Company
enters licensing and strategic partnership discussions with major
tobacco companies around the world.
In recent weeks and months, several milestone events have
highlighted the value of 22nd Century’s proprietary technology and
have captured the attention of “Big Tobacco,” Wall Street analysts,
and public health officials around the world:
- The United States Food and Drug
Administration (“FDA”) announced that the FDA is exercising its
authority under the Family Smoking Prevention and Tobacco
Control Act to mandate minimally or non-addictive levels of
nicotine in all combustible cigarettes sold in the United States.
22nd Century is the only company in the world capable of growing
tobacco with nicotine levels of just 0.4mg per gram of tobacco,
which is more than a 95% reduction in nicotine as compared to
tobacco in conventional cigarettes.
- Dr. Dorothy Hatsukami, Co-Director of
the Center for the Evaluation of Nicotine in Cigarettes, Professor
of Psychiatry and Director of the Tobacco Research Program at the
University of Minnesota, revealed the fundamental findings of a
highly anticipated Phase III study using 22nd Century’s SPECTRUM®
research cigarettes. The seminal 1,250-patient study demonstrates
an immediate reduction to Very Low Nicotine levels is most likely
to lead to less harm.
- 22nd Century met in June with the FDA
to review the Company’s Modified Risk Tobacco Product (MRTP)
application for 22nd Century’s Very Low Nicotine Content cigarettes
– the world’s lowest nicotine tobacco cigarettes. Based on written
and in-person feedback received from the FDA, the Company announced
it will move forward in 2018 with a significantly expanded MRTP
application for the Company’s BRAND “A” Very Low Nicotine Content
cigarettes.
Public health advocates predict that the FDA mandate of Very Low
Nicotine Content tobacco in all cigarettes sold in the United
States will save millions of lives and could prevent a new
generation of young people from becoming addicted to cigarettes.
Dozens of independent studies that have been conducted with 22nd
Century’s proprietary Very Low Nicotine cigarettes demonstrate that
the FDA’s plan is both scientifically sound and readily achievable.
For the Company’s potential to affect tremendous public health
benefits while also significantly disrupting the tobacco industry,
22nd Century has captured the attention of many investors.
“To close the largest capital raise – at the highest price per
share – in the history of 22nd Century speaks to the strong
institutional interest that has emerged around 22nd Century; we are
especially pleased to have negotiated a no-warrant financing,”
explained Henry Sicignano, III, President and CEO of 22nd Century
Group. “Our cash balance is now well over $60 million and will be
more than sufficient to enable 22nd Century to bring the Company’s
proprietary non-addictive Very Low Nicotine Content cigarettes to
market.”
Chardan acted as the sole placement agent for this
transaction.
The offering was made pursuant to a shelf registration statement
(Registration No. 333-215391) previously filed and declared
effective by the Securities and Exchange Commission (the “SEC”).
The final prospectus supplement relating to the offering has been
filed with the SEC and is available at the SEC’s website at
www.sec.gov. Alternatively, copies of the final prospectus
supplement and accompanying base prospectus may be obtained, once
available, by contacting Chardan, 150 East 58th Street, 28th Floor,
New York, NY 10155; telephone number (646) 465-9028.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company focused on genetic
engineering and modern plant breeding which allows the increase or
decrease of the level of nicotine in tobacco plants and the level
of cannabinoids in cannabis plants. The Company’s primary mission
in tobacco is to reduce the harm caused by smoking. The Company’s
primary mission in cannabis is to develop proprietary hemp/cannabis
strains for important new medicines and agricultural crops. Visit
www.xxiicentury.com and www.botanicalgenetics.com for more
information.
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, including but not limited to our future revenue
expectations. 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, 2016, filed on March 8, 2017,
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171011005571/en/
22nd Century GroupJames Vail, 716-270-1523Director of
Communicationsjvail@xxiicentury.com
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