22nd Century Group, Inc. (NYSE MKT:XXII)
announced today that it has closed a private placement with Crede CG
III, Ltd (Crede), pursuant to which 22nd Century sold 3,871,767 shares
of restricted stock for the purchase price of $10,000,000. The pricing
was determined by the 3-day volume-weighted average price (VWAP) from
September 10 through 12. Proceeds of the financing will be used to
conduct exposure studies, product launches, acquisitions, potential
joint ventures, and for general working capital purposes.
As one of the largest shareholders of the Company, Crede continues to
demonstrate its long-term investment horizon by investing new money in
restricted common stock of 22nd Century Group at current market prices –
without a discount.
Joseph Pandolfino, Founder and CEO of 22nd Century Group, stated, “Crede
has been a long-term shareholder and is assisting the Company in
achieving its strategic objectives. Additionally, Crede has been
instrumental in our Asian strategic initiatives and we are hopeful these
lead to attractive opportunities for 22nd Century in the coming weeks.”
“The proceeds from this private placement will greatly strengthen our
balance sheet. Further, the funds will facilitate several R&D catalysts
as well as the achievement of revenue-generating milestones,” explained
John T. Brodfuehrer, 22nd Century’s CFO. He added, “I expect the
coming months to be very exciting for our shareholders.”
Chardan Capital Markets, LLC acted as the exclusive placement agent in
this transaction.
For additional information, please visit: www.xxiicentury.com
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company whose proprietary
technology through genetic engineering and plant breeding allows (i) the
level of nicotine (and other nicotinic alkaloids) in the tobacco plant
to be decreased or increased and (ii) the levels of cannabinoids to be
decreased or increased in addition to the cannabinoid profile being
tailored. 22nd Century owns or is the exclusive licensee of 129 issued
patents in 78 countries plus an additional 51 pending patent
applications, and 22nd Century has co-exclusive rights to another 16
patent applications. Goodrich Tobacco is focused on commercial
tobacco products and potential less harmful cigarettes. Botanical
Genetics is focused on natural, safe and effective cannabis-based
products for human health, well-being and nutrition, in addition to
industrial products refined from cannabis. Hercules Pharmaceuticals
is focused on X-22, a prescription smoking cessation aid in
development.
Cautionary Note Regarding Forward-Looking Statements: This press
release contains forward-looking information, including all statements
that are not statements of historical fact regarding the intent, belief
or current expectations of 22nd Century Group, Inc., its directors or
its officers with respect to the contents of this press release. The
words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,”
“believe,” “intend” and similar expressions and variations thereof are
intended to identify forward-looking statements. We cannot guarantee
future results, levels of activity or performance. You should not place
undue reliance on these forward-looking statements, which speak only as
of the date that they were made. These cautionary statements should be
considered with any written or oral forward-looking statements that we
may issue in the future. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any
of the forward-looking statements to conform these statements to reflect
actual results, later events or circumstances, or to reflect the
occurrence of unanticipated events. You should carefully review and
consider the various disclosures made by us in our annual report on Form
10-K for the fiscal year ended December 31, 2013, filed on January 30,
2014, including the section entitled “Risk Factors,” and our other
reports filed with the U.S. Securities and Exchange Commission which
attempt to advise interested parties of the risks and factors that may
affect our business, financial condition, results of operation and cash
flows. If one or more of these risks or uncertainties materialize, or if
the underlying assumptions prove incorrect, our actual results may vary
materially from those expected or projected.
Copyright Business Wire 2014