22nd Century Group Inc (NYSEMKT:XXII) shares rose 5.88% on Wednesday to $1.08 and were mostly unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.71 to $1.71. The company has a market cap of $109.79 million at 90.70 million shares outstanding.
22nd Century Group Inc is 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 (VLN) cigarettes; manufacture, marketing and distribution of its RED SUN and MAGIC cigarettes; production of SPECTRUM research cigarettes for the National Institute on Drug Abuse (NIDA); 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 (THC), plants with high levels of cannabidiol (CBD), and other non-THC cannabinoids.
In a press release this week, 22nd Century Group Inc shared that Crede CG III, Ltd. has dismissed claims in the ongoing litigation related to a terminated China joint venture. This lawsuit was filed after the company decided to terminate a failed China joint venture arrangement with Crede and its principal, Terren Peizer, on grounds of non-performance and other breaches by Crede and its principals.
Earlier this year, 22nd Century Group Inc mentioned that the United States District Court for the Southern District of New York allowed their request to separate the Crede lawsuit into two cases. The claims relating to the now terminated China joint venture were transferred to the United States District Court for the Western District of New York.
Last week, Crede dismissed its lawsuit against the company in the Western District of New York and agreed not to pursue its claims against the Company related to the failed China joint venture. In effect, this dismissed claims alleging damages in excess of $500 million. This week, the Southern District of New York granted the company’s request to file a motion for summary judgment in the case.
From the beginning, the Company has known that Crede’s lawsuit was frivolous and completely without merit,” explained a 22nd Century spokesman. “We are pleased that Crede has now recognized this fact and has dismissed the claims that were transferred to the WDNY Court. We look forward to the prompt and successful resolution of the remaining portion of the case in the SDNY Court.”
If so, 22nd Century Group Inc shares could be in for another wave higher on a successful resolution of the portion of the case in the SDNY court.
Shares have bounced off the near-term support and also broke out of a short-term double bottom reversal formation, signaling that further upside is in the cards. Volume is also sustained so bullish momentum could continue to pick up as the case moves along.
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