22nd Century Group Inc
NASDAQ:XXII
22nd Century Group Inc
22nd Century Group, Inc. is a biotechnology company, which develops disruptive plant-based solutions the for life science, consumer product, and pharmaceutical markets. The company is headquartered in Williamsville, New York and currently employs 76 full-time employees. The company went IPO on 2006-10-17. The firm is focused on tobacco harm reduction, reduced nicotine tobacco and improving health and wellness through plant science. In tobacco, hemp/cannabis, and hop plants, it uses various plant breeding technologies, including genetic engineering, gene-editing, and molecular breeding to deliver solutions for the life science and consumer products industries by creating new plants with optimized alkaloid and flavonoid profiles as well as improved yields and valuable agronomic traits. The company has developed very low nicotine content (VLNC) tobacco and cigarettes, which contain 95% less nicotine than conventional tobacco and cigarettes. Its reduced nicotine cigarettes include VLN King and VLN Menthol King. In hemp, the Company is developing hemp varieties with increased levels of certain cannabinoids and other desirable agronomic traits.
22nd Century Group, Inc. is a biotechnology company, which develops disruptive plant-based solutions the for life science, consumer product, and pharmaceutical markets. The company is headquartered in Williamsville, New York and currently employs 76 full-time employees. The company went IPO on 2006-10-17. The firm is focused on tobacco harm reduction, reduced nicotine tobacco and improving health and wellness through plant science. In tobacco, hemp/cannabis, and hop plants, it uses various plant breeding technologies, including genetic engineering, gene-editing, and molecular breeding to deliver solutions for the life science and consumer products industries by creating new plants with optimized alkaloid and flavonoid profiles as well as improved yields and valuable agronomic traits. The company has developed very low nicotine content (VLNC) tobacco and cigarettes, which contain 95% less nicotine than conventional tobacco and cigarettes. Its reduced nicotine cigarettes include VLN King and VLN Menthol King. In hemp, the Company is developing hemp varieties with increased levels of certain cannabinoids and other desirable agronomic traits.
Restructuring Complete: 22nd Century finished its transition away from low-margin contract manufacturing to focus on higher-margin branded and VLN (very low nicotine) products.
Debt-Free & Cash-Rich: The company is now debt-free with approximately $14 million in cash post-quarter, significantly improving its balance sheet and funding position.
VLN Product Expansion: VLN and partner-branded cigarettes are now sold in about 1,500 stores across 21 states, with ongoing expansion and state authorizations.
Revenue & Volume Dip: Third quarter net revenue was $4 million, down slightly from the prior quarter, reflecting the exit from legacy low-margin business lines.
Gross Margin Strategy: Management expects gross margins to improve as branded product sales grow, targeting 20–30% margin per carton and a lower breakeven volume.
Breakeven Target: Management is still targeting EBITDA breakeven by Q2 2026.
Insurance Settlement Boost: A $9.5 million insurance settlement was received in October, boosting cash and supporting growth investments.
ATM Facility: An at-the-market (ATM) equity facility up to $25 million was established for future capital needs, but there is no immediate plan to use it.
