CLARENCE, N.Y.--(BUSINESS WIRE)--22nd Century Group, Inc. (NYSE American: XXII), a plant biotechnology company that is focused on tobacco harm reduction, announced today that it has entered into an agreement with institutional investors to receive approximately $54 million in gross proceeds in a registered direct offering through the sale of 20.57 million shares of common stock at a price of $2.625 per share. This no-warrant financing will be the largest capital raise – at the highest price per share – in the history of 22nd Century and will raise the Company’s cash balance to well over $60 million – enough to meet all regular operating expenses for more than five years.
The offering is expected to close on or about October 10, 2017, subject to customary closing conditions. The net proceeds of the financing will be used for general corporate purposes, including working capital, as the Company begins licensing and strategic partnership discussions with major tobacco companies.
“We are very pleased to announce that, as a result of this no-warrant financing, 22nd Century will have more than 5 years of operating cash on hand,” explained Henry Sicignano, III, President and CEO of 22nd Century Group. “More than $50 million in net proceeds will significantly improve our balance sheet and, therefore, our negotiating position in discussions with potential licensing and strategic partners.”
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company focused on genetic engineering and 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.