22nd Century Group sells Needle Rock Farms for $770,000 to strengthen cash position and support growth strategies.
Quiver AI Summary
22nd Century Group, Inc. announced the completion of the sale of its Needle Rock Farms assets for approximately $770,000, which will enhance its cash position and support its growth strategies for 2025. CEO Larry Firestone emphasized that selling unused assets like Needle Rock Farms, linked to their earlier divested hemp business, allows the company to reinvest in initiatives that are already yielding positive results, particularly with the upcoming launches of their VLN® and Partner VLN® products. The company plans to share its first quarter results on May 13, 2025, during a conference call. 22nd Century Group focuses on providing smokers with reduced-nicotine alternatives, aiming to empower them to control their nicotine consumption.
Potential Positives
- Closing the sale of Needle Rock Farms generates approximately $770,000 in net proceeds, positively impacting the company's cash position.
- The increased cash reserves will support current growth plans and revenue strategies for 2025, which are already yielding positive results year-to-date.
- The company's focus on nicotine harm reduction and innovative product offerings, such as the VLN® cigarette, positions it favorably in the tobacco industry.
Potential Negatives
- Closing the sale of Needle Rock Farms may indicate a strategy of asset depletion rather than growth, potentially raising concerns about the company’s long-term viability.
- The reliance on a relatively small cash influx of $770,000 from the asset sale could signal financial instability or an inability to generate adequate revenue through core operations.
- The upcoming first quarter results are noted to be generating "positive results," but the lack of specifics may lead to skepticism regarding the company's actual financial health and performance.
FAQ
What did 22nd Century Group announce on May 8, 2025?
22nd Century Group announced the closing of the sale of its Needle Rock Farms assets, generating approximately $770,000 in net proceeds.
How will the funds from the sale be used?
The funds will be redeployed into current growth plans and initiatives that are generating positive results for 2025.
When will the company's first quarter results be reported?
The complete first quarter results will be reported on May 13, 2025, along with a conference call on the same day.
What is the significance of VLN® cigarettes?
VLN® cigarettes contain 95% less nicotine than traditional cigarettes, helping smokers reduce their nicotine consumption and make informed choices.
What are the trademarks associated with 22nd Century Group?
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC, reflecting their unique product offerings.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$XXII Hedge Fund Activity
We have seen 5 institutional investors add shares of $XXII stock to their portfolio, and 31 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ANSON FUNDS MANAGEMENT LP added 49,558 shares (+inf%) to their portfolio in Q4 2024, for an estimated $263,152
- GEODE CAPITAL MANAGEMENT, LLC removed 48,043 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $255,108
- HRT FINANCIAL LP removed 45,412 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $241,137
- VIRTU FINANCIAL LLC removed 32,547 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $172,824
- CERITY PARTNERS LLC removed 21,500 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $114,164
- TOWER RESEARCH CAPITAL LLC (TRC) removed 16,127 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $85,634
- VANGUARD GROUP INC removed 13,096 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $69,539
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Further Strengthens Balance Sheet Cash Position
MOCKSVILLE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that is leading the fight against nicotine dependence and believes smokers should have a choice about their nicotine consumption, today announced closing of the sale of its Needle Rock Farms assets with net proceeds of approximately $770,000 after expenses.
“The sale of unused assets such as Needle Rock Farms which was related to the hemp cannabis business that was sold in December 2023, enables us to redeploy capital into our current growth plans,” said Larry Firestone, CEO of 22nd Century Group. “The additional $770,000 in cash increases our cash position which will fund our revenue growth strategies for 2025 that are already generating positive results year-to-date even before we see the benefit of our new VLN ® and Partner VLN ® launches.”
22nd Century will report its complete first quarter results on May 13, 2025, with a conference call the same day.
About 22nd Century Group, Inc.
22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption.
We created our flagship product, the VLN ® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption. VLN ® cigarettes have 95% less nicotine than the traditional cigarette and have been proven to greatly reduce nicotine consumption. Instead of offering new ways of delivering nicotine to addicted smokers, we offer smokers the option to take control of their nicotine consumption and make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether.
Our wholly owned subsidiaries include a leading cigarette manufacturer that produces all VLN ® products and provides turnkey contract manufacturing for other tobacco brands both domestically and internationally. The 60,000 square foot facility in Mocksville, North Carolina has the capacity to produce more than 45 million cartons of combusted tobacco products annually with additional space for expansion.
Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with 95% less nicotine. Our extensive patent portfolio has been developed to ensure we have the only low nicotine combustible cigarette in the United States and critical international markets.
VLN ® and Helps You Smoke Less ® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com , on X (formerly Twitter) , on LinkedIn , and on YouTube .
Learn more about VLN ® at tryvln.com .
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 20, 2025. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
[email protected]
214-597-8200