22nd Century Group Boosts Cash Position with Recent Asset Sale
Strengthening Financial Position through Strategic Asset Sale
22nd Century Group, Inc. (NASDAQ: XXII), recognized for its commitment to reducing nicotine dependence, has achieved a significant milestone with the completion of the sale of its Needle Rock Farms assets. This strategic move comes with net proceeds of approximately $770,000 after all expenses, reinforcing the company's robust cash position.
As stated by Larry Firestone, the CEO of 22nd Century Group, the divestiture of unused assets, such as Needle Rock Farms, which previously related to the hemp cannabis segment closed in late 2023, allows for the optimal redeployment of capital into their ongoing growth initiatives. The infusion of $770,000 in cash is set to enhance the company's financial foundation, supporting their revenue growth strategies which are already yielding positive outcomes thus far in the year.
Future Plans and Revenue Growth
22nd Century will disclose its comprehensive first-quarter results on May 13, 2025, during a conference call planned for the same day. This will provide insight into the company’s financial health and operational advancements as it continues to innovate within the tobacco and nicotine market.
The key to 22nd Century Group's strategy lies in its flagship product, the VLN® cigarette. Designed specifically to provide traditional cigarette smokers with an authentic option that allows them to control their nicotine intake, VLN® cigarettes contain an impressive 95% less nicotine than conventional cigarettes. This unique offering empowers smokers to make informed choices, potentially leading to reduced nicotine consumption.
Pioneering Nicotine Harm Reduction
22nd Century Group is at the forefront of nicotine harm reduction, championing the idea that smokers should have the ability to manage their nicotine consumption effectively. Rather than presenting novel methods for nicotine delivery, the focus is on allowing smokers the opportunity to escape the grips of nicotine addiction by providing a viable alternative.
Innovations and Facilities
The company operates a state-of-the-art manufacturing facility in Mocksville, North Carolina, spanning 60,000 square feet. This facility is not only dedicated to the production of VLN® products but also offers contract manufacturing services for various tobacco brands, both in domestic and international markets. It possesses the capacity to produce more than 45 million cartons of combusted tobacco products annually, with room for future expansion.
Conditional upon proprietary and patented technologies, 22nd Century has developed reduced nicotine tobacco blends that meet the flavor demands of consumers while significantly lowering nicotine content. This innovation ensures that they maintain their status as the sole provider of low-nicotine combustible cigarettes in the United States and key international markets.
Commitment to Consumer Health
The company's overarching goal is to prioritize public health by offering smarter, less addictive choices to smokers. Alongside VLN®, 22nd Century has successfully created a platform that encourages consumers to evaluate their nicotine habits and opt for healthier alternatives. Their slogans, VLN® and Helps You Smoke Less®, speak volumes about their mission to reformulate consumer choice in tobacco.
Ongoing Engagement and Information Access
For stakeholders and those interested in the latest updates, 22nd Century Group provides various avenues for engagement and information sharing. The company invites individuals to explore more about their products and innovations through their online platforms. Enhancing consumer and investor relationships is a priority, aligning with their mission to drive meaningful change within the tobacco industry.
For additional inquiries and insights about their strategic moves and innovations, those interested can reach out through their Investor Relations contact information.
Frequently Asked Questions
What is the significance of the Needle Rock Farms asset sale?
The sale strengthens 22nd Century Group's cash position, allowing the company to reinvest funds into growth strategies.
What is the core product of 22nd Century Group?
The flagship product is the VLN® cigarette, designed to reduce nicotine dependency with 95% less nicotine content.
When will the first quarter results be announced?
The first quarter results will be reported on May 13, 2025, during a conference call.
Where is the manufacturing facility located?
The manufacturing facility is located in Mocksville, North Carolina.
How does 22nd Century Group contribute to public health?
By providing reduced-nicotine options, the company empowers smokers to make healthier choices regarding their nicotine consumption.
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