22nd Century Group Inc (NYSEMKT:XXII) shares were down 7.79% on Wednesday to $1.42 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.71 to $1.75. The company has a market cap of $119.38 million at 82.20 million shares outstanding.
22nd Century Group Inc is a plant biotechnology company that is focused on technology that allows increasing or decreasing the level of nicotine and other nicotinic alkaloids in tobacco plants, and levels of cannabinoids in cannabis plants through genetic engineering and plant breeding.
The company is engaged in various activities, including research and development of less harmful or modified risk tobacco products and tobacco plant varieties; development of X-22, a smoking cessation aid consisting of very low nicotine cigarettes; manufacture, marketing and distribution of its RED SUN and MAGIC cigarettes; production of SPECTRUM research cigarettes for the National Institute on Drug Abuse; contract manufacturing of third-party branded tobacco products, and research and development of plant varieties of hemp/cannabis, such as plants with low to no amounts of delta-9-tetrahydrocannabinol; plants with high levels of cannabidiol, and other non-THC cannabinoids.
In a press release earlier this week, 22nd Century Group Inc announced the expiry of 2,250,000 Crede warrants. This resulted to a decrease of approximately 19.1% in the total number of shares of common stock purchasable by warrants.
The expiration of the Tranche 1A and Tranche 1B Warrants is very positive news for our other shareholders,” explained Henry Sicignano, III, President and CEO of 22nd Century Group Inc. “Furthermore, because the Tranche 2 and Tranche 3 Warrants will never become exercisable, an aggregate of 4,250,000 shares of potential dilution from the exercise of all the Crede warrants will be avoided entirely.
Recall that 22nd Century Group Inc issued to Crede Tranche 1A Warrant to purchase 1,250,000 shares of Company common stock at an exercise price of $3.36 per share and Tranche 1B Warrant to purchase 1,000,000 shares of Company common stock at an exercise price of $2.5951 per share.
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