22nd Century To Secure $5.3M Via Registered Direct Offering Priced Above Market

22nd Century Group, Inc. XXII has entered into definitive agreements with certain investors for the purchase and sale of 11.2 million shares of common stock and warrants at a price of $0.47 per share in a registered direct offering priced above market.

Gross proceeds to the company from the registered direct offering are expected to be $5.3 million, before deducting the placement agent’s fees and other offering expenses payable by the company. The company intends to use the net proceeds from this offering for the continued commercial expansion of its VLN reduced nicotine content tobacco cigarettes in additional markets, working capital related to its commercial activities and general corporate purposes. The company has eliminated its at-the-market offering program.

Transaction Details

As part of the transaction, the company agreed to issue to the investors warrants to purchase up to 11.2 million shares of common stock. The warrants have an exercise price of $0.47 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the offering, the company also agreed to reduce the exercise price on the previously issued 11.2 million warrants owned by the investors participating in the offering from $2.05 to $0.47. The remaining 5.9 million previously issued warrants were not repriced and remain at an exercise price of $2.05. The closing of the offering is expected to occur on or about June 22, 2023, subject to the satisfaction of customary closing conditions.

Photo by Giorgio Trovato on Unsplash

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