22nd Century slumps on direct stock-and-warrants deal

22nd Century

06/07/2023 15:15

** Shares of 22nd Century Group  XXII.O  down 17.2% at $2.25
and near fresh record lows early Thurs after agricultural
biotech raises equity
    ** XXII falling for third straight session, shedding ~45% of
value
    ** Co agrees to sell to certain investors 778,634 shares and
warrants at $3.80 for ~$3 mln raise to fund commercial expansion
of its reduced nicotine content tobacco cigarettes
    ** As part of transaction, agrees to issue to the investors
warrants to purchase up to ~1.6 mln shares
    ** Co has approx 15.9 mln shares outstanding
    ** Early Weds, it effected 1-for-15 reverse stock split in
order to regain compliance with Nasdaq listing requirements
    ** With move on the session, XXII has lost nearly 80% YTD
    ** Division of Dawson James Securities acted as sole
placement agent for the direct offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))