Chardan Capital Markets Has Bullish View On 22nd Century Group Following Recent Plant Tour

In a report published Monday, Chardan Capital Markets analyst James McIlree reiterated a Buy rating and $9.00 price target on

. In the report, Chardan Capital Markets noted, “We expect meaningful revenues to begin from a number of sources including a license agreement with British American Tobacco (BAT) and commercial product sales from the company's proprietary RED SUN and MAGIC brands. Over the longer-term 22nd Century will pursue the $1 billion US smoking-cessation market with its proprietary X-22 cigarette, and will file with the FDA applications for modified risk cigarettes. 22nd Century owns or exclusively controls 113 issued patents and 37 patent applications which gives it exclusive worldwide rights to all uses for certain genes that control nicotine content in tobacco plants. The company's proprietary technology enables the control of nicotine levels in tobacco plants by controlling the genes responsible for nicotine production in tobacco plants. The value of this technology was validated by BAT in October of 2013 when it signed a worldwide research license agreement with 22nd Century. The company received a $7 million payment in Q4 of 2013 and we expect an additional $7 million over the next 12-18 months. BAT has the option to turn this research license into a royalty-bearing commercial license at any time.” 22nd Century Group closed on Friday at $1.23.