Friday Update On NYSE American Profile (XXII)
$7.00 Price Target From Dawson James Provides Over 90% Potential Upside From Wednesday's Close
XXII needs to remain at the top of your watch-list today. Here's why...
Yesterday, XXII dropped down to the $3.00 which was around a level it hasn't been since April 19th when it hit $3.01.
Back in April when XXII dropped to that level, it proceeded to bounce to over $6.00 in the matter of days for a move of over 100%.
Could the same be on the way for XXII? One key thing to look at is this profile's oversold leaning technicals.
According to Barchart, XXII has a (at close Thursday):
- 9-Day Relative Strength Index: 15.49%
- 14-Day Relative Strength Index: 24.47%
- 14-Day Raw Stochastic: 6.57%
- 14-Day Williams %R: 93.43%
With all these technicals leaning towards oversold areas, a potentially massive bounce may be right around the corner for XXII.
Take a moment now and read my initial XXII report below and get this profile back on your radar today.
Previously, I brought this profile to you back on April 26th. That day it shot $.65 from the open to the high for an approximate 11% move.
Now, after the company dropped game-changing news yesterday that I've covered in my report below, it's time to get this NYSE American profile back on your radar quickly.
For July 15th, there is one specific Biotech company you need to watch closely:
*22nd Century Group, Inc. (NYSE American: XXII)*
22nd Century Group, Inc. is a leading plant biotechnology company focused on technologies that alter the level of nicotine in to-bacco plants and the level of canna-bin-oids in he-mp/can-na-bis plants through genetic engineering, gene-editing, and modern plant breeding.
22nd Century’s primary mission in to-bacco is to reduce the harm caused by smoking through the Company’s proprietary reduced nicotine content to-bacco smokes – containing 95% less nicotine than conventional smokes.
And, due to several potential catalysts, XXII needs to be on your radar. Above all, this first potential catalyst you need to check out was released yesterday:
No. 1 Potential XXII Catalyst - Wednesday's Big Breaking Strategic Partnerships News
22nd Century Group Adds Strategic Partnerships With Sawatch Agriculture and Folium Botanical for Next-Generation Commercial He-mp/Can-na-bis Plant Breeding and Commercial Scale-Up
- Company Already Operating With Expert Alkaloid-Based Plant Breeders, Critical to Scaling Up New, Disruptive Plant Lines
- Expands Company’s Operating Network in the Northern Hemisphere to Provide Indoor and Outdoor Alkaloid-Based Plant Line Breeding, Scale-Up, and Cultivation Program
- Folium Botanical Is In Close Proximity to and Allows for Vertical Integration of Breeding Expertise With Needle Rock Farms
- New Lines Already Completing the Initial Two-Year Development Cycle and Emerging From Company’s Vast Portfolio of He-mp/Can-na-bis Lines Poised to Be Monetized in the Fourth Quarter
- Collaborations Key to Development of New, Commercially Valuable Plant Lines and Related IP in Two-Year Cycles, A Fraction of the Time Typically Required to Develop New Plants
- Addition of Southern Hemisphere Breeder to Be Announced Shortly Will Provide 22nd Century with Year-Round Growing Capabilities
BUFFALO, N.Y., July 14, 2021 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NYSE American: XXII), [...], today announced that it has added strategic partnerships with expert commercial-scale plant breeders Sawatch Agriculture and Folium Botanical. The partnerships with these two northern hemisphere breeders add to the breeding capabilities that 22nd Century already has through its close partnership with Aurora Can-na-bis, and another southern hemisphere-based breeder that will be announced shortly, providing 22nd Century year-round growing capabilities.
With decades of combined specialized alkaloid plant breeding and plant biotechnology experience, these expert breeders have proven next-generation technologies and innovations on breeding, commercial scale-up, and cultivation, many of which are far beyond those of independent competitive breeders or in-house breeding in consumer product companies. Under 22nd Century’s direction, proprietary plants will be developed with optimum levels of canna-bin-oids that meet high-quality standards when grown at commercial scale.
“We are thrilled to announce the addition of these world-class alkaloid-based plant breeding specialists to complement 22nd Century’s capabilities in our upstream value chain. Our four breeding partnerships complete our portfolio of comprehensive plant science capabilities, enabling the rapid creation and scale-up of stable, tailored, highly disruptive plant lines with predictable yields critical to the mass cultivation of he-mp/can-na-bis, which will be absolutely necessary to meet the rapidly growing market demand for improved, stable genetics. We are giving growers a competitive advantage by substantially improving crop yield and optimizing the time that it takes to develop new lines to a two-year cycle, a reduction from the 7 to 10 years that would typically be necessary to create new lines using our proprietary capabilities,” said James A. Mish, chief executive officer of 22nd Century Group. “Along with new lines progressing in development, we have lines emerging from our vast portfolio of he-mp/can-na-bis lines that are completing the initial two-year development cycle. We look forward to the monetization of these lines and our current he-mp/can-na-bis IP portfolio, with our first revenue from our he-mp/can-na-bis franchise expected in the second half of 2021. Our complete upstream he-mp/can-na-bis capabilities enable us to rapidly offer additional disruptive, commercially valuable he-mp/can-na-bis plant lines at large scale and with increased, stable yields to very attractive end-use markets.”
Strategic Partnerships Maximize 22nd Century’s Canna-bin-oid Value Chain
With today’s announcement of these expert breeding partnerships, 22nd Century has secured all key partnerships needed to maximize and support each of the segments of its canna-bin-oid value chain: plant profiling (CannaMetrix), plant biotechnology (KeyGene), plant breeding, commercial-scale plant cultivation, and ingredient extraction/purification (Sawatch Agriculture, Folium Botanical, Aurora Can-na-bis, Needle Rock Farms, and Panacea).
22nd Century’s plant science mission and expertise serve as the crucial link between these partner companies to create the specific traits needed to optimize he-mp/can-na-bis products at commercial scale. Mass cultivation is quickly becoming a critical challenge in the he-mp/can-na-bis industry. Most existing plant lines do not exhibit the stable genetics, predictable yield, or specific composition of canna-bin-oids required to fully unlock the value of the he-mp/can-na-bis industry. 22nd Century’s upstream capabilities provide for optimized plant products and scale-up as the industry evolves toward mass production.
The Company’s goal is to provide leading brands in the life science, consumer product, and pharmaceutical end-use markets a license to utilize the new lines or ingredients (flower, distillate, isolate, etc.) derived from the most stable, predictable, and reliable he-mp/can-na-bis lines with differentiated traits. These licenses or ingredients will serve to enhance their respective products, consumers’ experience, and commercial success. Using its genetically engineered he-mp/can-na-bis plants and ability to scale, 22nd Century can accelerate development and speed to market of products with desired end-user benefits based on specific cannabinoid and terpene profiles at scale in a fraction of the time of competitors.
Multiple He-mp/Can-na-bis Revenue Streams in 2021 and a Long Growth Runway
The Company is actively pursuing multiple he-mp/can-na-bis revenue streams in 2021 and beyond. These include monetization of a portion of the Company’s valuable he-mp/can-na-bis intellectual property, including through its recently announced strategic partnership with Aurora Can-na-bis, and offtake commitments for the Company’s high CB*D and CB*G plant lines currently growing in its prime Colorado he-mp/can-na-bis growing location, 22nd Century’s world-class Needle Rock Farms, for commercialization in the forms of flower, distillate, and isolate. Additional new plant lines coming through the development pipeline will expand revenue generation opportunities for years to come creating a long growth runway.
Read the full article here.
No. 2 Potential XXII Catalyst - $7.00 Price Target From Dawson James Securities
On June 11th, 2021, James McIlree of Dawson James Securities provided XXII with a $7.00 price target.
From Wednesday's close, that provides this NYSE American profile with over 90% potential upside.
Here are some key highlights from the report:
- 22nd Century raised $40Mn in gross proceeds, $38.2Mn net, from the sale of 10 million shares to one in-vest-or, bringing pro forma cash to almost $70Mn, or over 5 years of cash at recent burn rates. However, we believe the burn rate can decline with successful monetization of the company’s to-bac-co IP and initiatives in he-mp and can-na-bis. The stronger balance sheet will, in our view, provide greater negotiating leverage to the company in the case where a low-nicotine mandate is implemented, provide greater resources to roll out a VLN cig-a-rette if and when the MRTP is approved, build out the he-mp/can-na-bis franchise and acquire additional IP in the existing or new franchises.
- The company reiterated its expectation of licensing and revenue to begin in the second half of this year from the IP it shares with Aurora Can-na-bis (NASDAQ: ACB, $9.89, Not Rated). Recently, Aurora announced the formation of a Science & Innovation Business Unit to commercialize technology that enables canna-bin-oid biosynthesis in plants and microorganisms. Aurora and 22nd Century Group share the global intellectual property (IP) rights to certain patents and patent applications relating to genes in the he-mp/can-na-bis plant required for the production of canna-bi-noids in the cann-a-bis plant. The two are working closely together to enforce their IP against infringing parties and explore commercial development opportunities.
- A new Canadian subsidiary has been created to allow the company to pursue opportunities in recreational and medical cann-a-bis. 22nd Century has exclusive rights in the U.S. and co-exclusive rights, with Aurora, everywhere else in the world (except Canada) to patents and patent applications of genes required to produce canna-bin-oids in the cann-a-bis plant. This subsidiary allows greater flexibility to pursue R&D projects given the changing legal status of he-mp and cann-a-bis globally.
- Valuation: Our $7 price target is the sum of: $3.08/share for the VLN asset, $3.18/share for the low-nicotine mandate and $0.74 for the he-mp/cann-a-bis franchise.
No. 3 Potential XXII Catalyst - Restructuring Of Panacea In-vest-ment And Expansion Of Franchise Capabilities
22nd Century Announces Restructuring of Panacea In-vest-ment, Expansion of Cann-a-bis Franchise Capabilities
22nd Century Takes Ownership of Needle Rock Farms, Provides North American Cultivation Base of Operations
BUFFALO, N.Y., July 01, 2021 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (NYSE American: XXII), [...], today announced it has signed a definitive agreement to restructure its strategic investment in Panacea Life Sciences, Inc., in line with the ongoing development of 22nd Century’s strategic partnership network.
“This exchange is an exciting leap forward for 22nd Century as we advance our upstream value chain strategy to bring highly disruptive he-mp and cann-a-bis plant lines to market. It is also highly attractive to 22nd Century on a financial basis, creating immediate value, asset-backed future value and potential future liquidity from an existing in-vest-ment,” said James A. Mish, chief executive officer of 22nd Century Group. “Needle Rock Farms is a world-class farming operation in a prime growing location where we already have plants in the ground toward our goal of revenue recognition from our cann-a-bis franchise in the second half of 2021. We will also retain access to Panacea’s extraction, purification and testing equipment located in Golden, CO for the benefit of our customers.”
“Rapidly growing demand means that mass cultivation is quickly becoming the critical challenge in the cann-a-bis industry. Most existing plant lines do not exhibit the stable genetics, predictable yield or specific composition of canna-bin-oids required to fully unlock the value of the cann-a-bis industry,” continued Mish. “22nd Century can provide the stable, predictable plant solutions required to achieve true commercial scale, and do so in as little as two years versus 7-10 years through traditional processes.”
Read the full article here.
No. 4 Potential XXII Catalyst - Oversold Leaning Technicals / Healthy Reversal
Check out the XXII 1-year chart below: