CLARENCE, N.Y. – 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. Terren Peizer, Chairman of Crede Capital Group, his personal investment vehicle, commented, ” We are delighted to have the opportunity to increase our stake in 22nd Century Group. We strongly believe that their important technology, which modulates nicotine and tar in tobacco, has the potential to be the first FDA approved “modified-risk” cigarette, and become the industry standard. As 22nd Century’s largest shareholder, we look forward to supporting the company in achieving its strategic objectives.”
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.”
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.