22nd Century Enters CBD Space With $24M Investment In Panacea
22nd Century Group Inc (NYSE:XXII) a plant biotechnology company focused on tobacco and cannabis plant research, on Wednesday announced the initial closing of an investment in Panacea Life Sciences Inc, a company specialized in CBD.
Investments are anticipated to total $24 million, in a combination of cash and 22nd Century stock.
“Our objective is to build a leading, profitable business in the fast-growing, emerging, legal hemp/cannabis space, and Panacea is a rapidly-growing, vertically-integrated, consumer-facing business with a very strong management team," Cliff Fleet, President and CEO of 22nd Century Group said in a statement. "We plan for Panacea to be a platform operating company in the hemp/cannabis space that is able to leverage our leadership in cannabis-plant research, our comprehensive expertise in FDA-regulated spaces, and our leadership team’s deep experience in consumer packaged goods."
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
Leslie Buttorff, CEO of Panacea Life Sciences said, “With state-of-the-art CO2 extraction, chromatography equipment to produce THC-free distillate oil, and product manufacturing lines, we can produce over $1 billion of product per year. We have also invested heavily in the development of a full, medically relevant, product portfolio for humans and animals. This is all driven by our talented, dedicated team and supported by a world-class, custom-developed, SAP-based, Cannabis ERP system that tracks the full chain of custody for every product we sell, which we believe clearly sets us apart from most other companies in the space.”
22nd Century's stock traded down about 1% to $1 per share at time of publication.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.