As you can see, XXII may have bottomed out today and hit strong support levels.
If this is the case, it could be in for a major bounce/reversal in the near term.
Most recently, the company gave this huge update in regards to its overall operations and fin-an-cial highlights from Q1:
22nd Century Group (Nasdaq: XXII) Reports Business Highlights and Fin-an-cial Results for the First Quarter 2022
- Launched VLN® Pilot Program in Chicago with Circle K as First Retail Trade Partner
- Began VLN® Shipments to South Korea for First International Launch
- FDA’s Proposed Menthol Ban Could Leave VLN® Menthol King as the Only Menthol Cigarette on the Market
- Achieved Breakthrough in He-mp/Cann-a-bis Plant Transformation Technology
- First Quarter Net Sales $9.0Mn, up 33% Year-Over-Year
BUFFALO, N.Y., May 05, 2022 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company focused on to-bacco harm reduction, reduced nicotine to-bacco, and improving health and wellness through modern plant science, today reported results for the first quarter ended March 31, 2022, and provided an update on recent business highlights. The Company will host a live audio webcast today at 10:00 a.m. ET.
James A. Mish, chief executive officer of 22nd Century Group, stated: “We are off to an exciting start with our VLN® reduced nicotine content cigarette pilot launch at more than 150 Chicagoland Circle K stores. The recently proposed menthol cigarette ban by the FDA could leave our VLN® Menthol King reduced nicotine cigarettes as the only menthol cigarette on the market, helping adult menthol smokers find an off-ramp from nicotine addiction. Early sales in our Chicago pilot affirm the importance of this approach, with sales of VLN® Menthol King already selling ahead of non-menthol in pilot stores. We fully anticipate an even more favorable regulatory environment as the FDA continues to advance the Agency’s Comprehensive Plan, which includes requiring all cigarettes to be ‘minimally or non-addictive,’ a standard our VLN® King and VLN® Menthol King cigarettes already meet.
As part of the pilot launch, we were highlighted in a Chicago Tribune feature story and received support from the Chicago Medical Society, broadening our initial visibility as we work to put this product in front of as many adult smokers as possible. As the first and only cigarettes designed specifically to ‘Help You Smoke Less,’ it is increasingly clear that VLN® has the potential to dramatically change the to-bacco marketplace by offering smokers a real choice in how or even if they consume highly addictive nicotine.
We are particularly excited to partner with Circle K, the second largest convenience store chain in the U.S., as our lead channel partner in bringing these products to market. VLN is featured prominently in Circle K’s stores where we are testing a variety of point-of-sale marketing materials and promotional programs to build awareness about VLN® and its unique benefits for adult smokers, 70% of whom want to quit smoking.
As we look to expand VLN® marketing and distribution beyond Chicago, we have already secured regulatory clearances to sell in 9 states and have applications pending in all other U.S. states. Additionally, we are engaged in discussions with a number of national and regional channel partners who recognize the exciting potential of VLN® and want to offer it to their customers.
We have also commenced our international launch efforts with the first shipment of VLN® to our partner in South Korea, and we continue to pursue additional partnerships and licensing of our VLN® to-bacco and IP across multiple countries to fully realize the global potential of VLN.”
Recent Key Fin-an-cial and Business Highlights
- Commenced pilot market sales of VLN® King and VLN® Menthol King 95% reduced nicotine content cigarettes, the first and only FDA MRTP (Modified Reduced To-bacco Product) designated combustible cigarettes.
- VLN® is now available at more than 150 Chicago-area Circle K retail stores in a pilot designed to optimize 22nd Century’s marketing programs.
- Positioned VLN® in the premium pricing segment of the cigarette market, with corresponding margins expected as VLN scales.
- VLN® packaging and advertising prominently display FDA mandated claim “Helps You Smoke Less.”
- Advanced discussions with potential channel partners to expand the regional and national sales reach of VLN® as the pilot program results become available.
- Ahead of its planned national VLN® launch, 22nd Century has secured the regulatory authorizations to sell VLN® in 9 states to date: Illinois, California, New York, Colorado, Texas, Florida, Minnesota, Mississippi and Rhode Island.
- Applications pending in additional states, with responses expected by summer for most states, particularly those undertaking their annual Master Settlement Agreement (MSA) directory reviews in April.
- Completed the first shipment of VLN® to South Korea as part of the Company’s international launch program.
- The South Korean market is an ideal market in which to test VLN®’s global appeal given its strong premium pricing, high smoking rates including one in three adult men, and interest in alternative to-bacco products.
- Continuing to explore launch opp's in additional markets in Asia and Europe with limited regulatory barriers while also leveraging VLN®’s MRTP authorization from FDA toward seeking approval in markets with higher regulatory barriers.
- 22nd Century Group continued its support of FDA’s proposed ban on menthol as a characterizing flavor in conventional nicotine cigarettes.
- The FDA’s proposed menthol cigarette ban could leave VLN® Menthol King as the only combustible menthol cigarette on the market, providing a critical off-ramp to help current menthol smokers to smoke less.
- 22nd Century also has the only FDA-authorized to-bacco cigarette able to meet the stringent reduced nicotine content product standard under the FDA’s Comprehensive Plan requiring that all cigarettes be made “minimally or non-addictive.” The company received the MRTP designation in December 2021.
- Completing delivery of a purchase order for 3 million additional variable nicotine research cigarettes, including menthol, for use in studies underpinning FDA’s proposed menthol ban and reduced nicotine content proposals. To date, 22nd Century has manufactured 33 million proprietary, variable nicotine research cigarettes for use in independent clinical studies funded by various agencies of the U.S. federal government, including the FDA, NIH and NIDA.
- Reported record first quarter to-bacco revenue of $9.0Mn, an increase of 33% year-over year, and manufacturing gross margin of approximately 5.1%.
- Historic contract manufacturing volumes augmented by VLN® production for U.S. and South Korea pilot sales.
- Signed new white-label contract manufacturing agreement expected to start production later in 2022 pending FDA authorization of our “substantial equivalence” application.
- Expansion of the Company’s existing manufacturing operations underway to increase capacity 25%.
- Contracted the largest VLN® to-bacco planting to date to support expansion in both the U.S. and international markets.
- Planting will include use of the Company’s new southern hemisphere capabilities to facilitate year-round growing of VLN® to-bacco.
- The growing program for the first time includes 22nd Century’s proprietary, non-GMO VLN® 2.0 bright and burley to-bacco varieties at commercial scale.
Read the full article here.
Coverage is officially reinitiated on past champ XXII. When you have time later, do this: