22nd Century Group Inc XXII

$XXII Expands Filtered Cigar Production

[lelianicruz]

22nd Century Group, Inc. (NASDAQ: $XXII), a tobacco company focused on providing reduced nicotine options, has secured a new commitment from an existing customer to supply filtered cigars. Under this agreement, 22nd Century will produce the customer's filtered cigars using an in-house blend, with shipments expected to begin in Q4 2024 and reach volumes of 200,000 cartons annually.

This follows a previous deal with the same customer for export cigarette products, which is expected to boost the company’s contract manufacturing volumes by 20%. The company anticipates steady production increases throughout 2024 and significant growth in 2025.

CEO Larry Firestone expressed confidence in the expanded contract manufacturing operations, highlighting that these agreements will help maximize production capacity and improve cash flow, with the goal of achieving positive cash operations by Q1 2025.