22nd Century Group has reduced debt by $3.8 million, now totaling approximately $3.9 million, supporting growth initiatives.
Quiver AI Summary
22nd Century Group, Inc. has announced a significant debt reduction, repaying an additional $1 million to its senior lender, bringing its total debt down to approximately $3.9 million from about $20 million since CEO Larry Firestone's appointment in December 2023. The company is focused on becoming debt-free to allocate resources towards growth in its contract manufacturing business and its reduced nicotine products, such as the VLN® cigarette. This product allows smokers to manage their nicotine consumption by offering a cigarette with 95% less nicotine than conventional options. The firm will release its complete first quarter results on May 13, 2025.
Potential Positives
- Year-to-date total debt reduction of approximately $3.8 million demonstrates significant financial improvement for the company.
- With total debt principal now under $4 million, 22nd Century Group is on a path to becoming debt-free, potentially allowing for greater focus on growth opportunities.
- The repayment of an additional $1 million to its senior lender highlights the company's commitment to financial responsibility and improving its balance sheet.
- The company's flagship product, VLN® cigarettes, offers a unique low-nicotine alternative, positioning it favorably within the tobacco industry as a pioneering harm reduction entity.
Potential Negatives
- Despite reducing total debt to approximately $3.9 million, the company still retains a significant debt burden that may hinder financial flexibility and growth prospects.
- The reliance on forward-looking statements raises concerns about the uncertainty surrounding the company's future performance and could lead to disappointment if expectations are not met.
- The initial total debt of approximately $20 million when the CEO joined indicates potential financial mismanagement or challenges prior to his appointment.
FAQ
What was the total debt reduction reported by 22nd Century Group?
22nd Century Group reported a total debt reduction of approximately $3.8 million.
How much debt does 22nd Century Group have now?
The company's total debt principal outstanding now stands at approximately $3.9 million.
When will 22nd Century Group report its first quarter results?
The complete first quarter results will be reported on May 13, 2025.
What is the main product offered by 22nd Century Group?
The main product is the VLN® cigarette, which has 95% less nicotine than traditional cigarettes.
What does the VLN® cigarette aim to achieve for smokers?
VLN® cigarettes aim to help smokers take control of their nicotine consumption and reduce dependency.
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
Year to Date Total Debt Reduction of approximately $3.8 Million
MOCKSVILLE, N.C., May 07, 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 that has repaid an additional $1 million in debt to its senior lender. The Company’s total debt principal outstanding now stands at approximately $3.9 million.
“Our debt reduction progress has been outstanding and total debt principal is now less than $4 million, as compared with approximately $20 million of total debt obligations when I joined the Company in December 2023,” said Larry Firestone, CEO of 22nd Century Group. We are on our way to becoming debt free, which will allow us to focus our resources on growth opportunities we see across our contract manufacturing business, as well as reduced nicotine content and branded products.”
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
