22nd Century Group, Inc. (NYSE MKT: XXII) announced today that the Company's
wholly-owned subsidiary, Botanical Genetics, LLC, has entered into a
worldwide license agreement with Anandia Laboratories Inc. (Anandia), a
plant biotechnology company based in Vancouver, granting 22nd Century Group
exclusive rights in the U.S. to four genes required for cannabinoid
production in the cannabis plant.
The proprietary technology licensed from Anandia allows the modification of
cannabinoid levels in cannabis providing 22nd Century Group an exclusive
competitive advantage in the burgeoning area of cannabis biotechnology. In
brief, the proprietary technology allows for the (i) increase in the
production and content of all or certain subsets of cannabinoids in the
cannabis plant, (ii) elimination of cannabinoids in hemp varieties, and
(iii) modification of the cannabinoid profile (percentage content of each
cannabinoid to the total content of all cannabinoids) for the production of
unique cannabis plant varieties for the medical marijuana industry.
The license also grants 22nd Century Group co-exclusive rights with Anandia
to this proprietary technology in all countries outside of the U.S. and
Canada. Anandia retains exclusive rights in Canada. The technology includes
23 patent applications filed between August 2010 and June 2014, one of which
recently received a Notice of Allowance by the U.S. Patent and Trademark
Office.
Jonathan Page, PhD, co-founder, president and chief scientific officer of
Anandia is an inventor on all of the patents licensed to 22nd Century Group.
Dr. Page, one of the lead investigators in the first cannabis genome
project, assisted in the sequencing of some 30,000 genes that make up the
genome of Cannabis sativa.
Cannabinoids are a class of diverse naturally-occurring compounds that act
on the cannabinoid receptors on human cells. The most notable cannabinoid is
the phytocannabinoid (9) -tetrahydrocannabinol (THC), the primary
psychoactive compound of cannabis. There are dozens of other cannabinoids in
the cannabis plant, including cannabidiol (CBD), cannabigerol (CBG),
cannabichromene (CBC), cannabinol (CBN) and tetrahydrocannabivarin (THCV),
all of which may have medical applications independently or in combination
with other cannabinoids.
Joseph Pandolfino, Founder and CEO of 22nd Century Group, stated, "The main
reason 22nd Century was attracted to Anandia' s proprietary technology is
that it gives us a level of exclusivity in the cannabinoid biosynthetic
pathway in cannabis similar to what we have achieved in the nicotinic
biosynthetic pathway in tobacco -- exclusive freedom to operate in the
entire pathway." Dr. Page explained, "22nd Century's track record in
developing complex patent portfolios in the plant biotechnology area is
impressive. For an early stage company such as Anandia, 22nd Century Group
is an ideal licensing partner."
Hemp, a type of cannabis, has been refined into products such as hemp seed
for food, hemp oil, wax, resin, rope, cloth, pulp, paper, plastics and
biofuels -- most of these for centuries. The fact that commercial hemp
varieties, which are the same species as marijuana (Cannabis sativa),
contain very low levels of THC, has greatly limited the production of hemp
during the modern era in the western world, including the U.S. Over
centuries, recreational marijuana was bred for elevated THC levels, but hemp
was bred for yield and other characteristics. Hemp was one of man's first
agricultural crops, and remained one of the planet's largest crops and most
important industrial crops until late in the nineteenth century when many
paper and fiber products were produced from hemp. Up until that time, the
very low THC levels in hemp were not considered a problem by governments,
unlike today. For example, Canada and the European Union only permit
cultivation of hemp varieties that contain less than 0.3% THC, which greatly
increases the risk to farmers of growing hemp.
Hemp based products have various advantages over their counterparts such as
strength and durability which are important for recycling. Hemp has the
longest fiber out of any of the natural fibers. According to Hemp.com,
various car makers are beginning to use hemp bi-products in their cars,
including Audi, BMW, Ford, GM, Chrysler, Honda, Mercedes, Porsche and
Volkswagen. Michael R. Moynihan, PhD, Vice President of Research and
Development of 22nd Century, explains, "The elimination of cannabinoids in
hemp is expected to revitalize the hemp industry worldwide."
In addition to the license agreement, as part of the transaction, 22nd
Century Group acquired a 25% stake in Anandia. 22nd Century Group invested
approximately $1,500,000 in cash and restricted stock in this transaction.
This investment in Anandia reflects 22nd Century's strategic interest in
cannabis, which will be further expanded through collaborative R&D funding
of Anandia's Vancouver-based facilities.
As reported earlier today by the Company, Crede CG III, Ltd invested $10
million in a 22nd Century Group private placement.
For additional information, please visit: www.xxiicentury.com
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