Boosted balance sheet
22nd Century Group has raised more than $50 million from the sale of new stock shares to institutional investors. Combined with cash already on hand, the company has $60 million—enough to fund its operations for more than five years.
The sale ensures that 22nd Century will have enough capital to continue its product development efforts while the company continues to lose money from its existing cigarette-making operations and its significant R&D operations.
A plant biotechnology company that is focused on tobacco harm reduction, 22nd Century is best known for its low-nicotine tobacco.
The company’s stock price has reached all-time highs since the U.S. Food and Drug Administration signaled interest in mandating lower levels of nicotine in tobacco products.
The stock sale also makes 22nd Century more financially sound, as it may begin entering negotiations with other tobacco producers. A five-year licensing deal with British American Tobacco expired last month, freeing the company to enter new agreements.
22nd Century is based in Clarence, New York, USA.