22nd Century Group Closes $10M Private Placement

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.