Our value addresses both scientific methodology and speed to market. We will leverage our existing know-how with the to-bacco and he-mp/cann-a-bis plants along with the proprietary tools and technologies possessed by our upstream partnerships with CannaMetrix and KeyGene to bring hop breeding into the 21st century. Our relationships with the world’s leading alkaloid plant producer-breeders, including Extractas Bioscience, Sawatch Agriculture, and Folium Botanical, will facilitate year-round growing capabilities at locations in both the southern and northern hemispheres.
Our R&D program objectives include creating new proprietary hop plants and valuable IP using our know-how and technologies, utilizing double haploids, gene-editing, molecular breeding, and other non-GMO technology. Non-GMO products are critical for success in international markets where such products are preferred or GMO products are banned.
We are well-positioned and advancing disruptive hop plant varieties and valuable IP in a fraction of the time it takes using traditional plant breeding methods still used by virtually all hop breeding companies today. This traditional process typically takes more than a decade to create a new hop plant variety, entailing high cost and risk due to this extended time and uncertain outcome – whereas our approach can reduce this development time to two years for the underlying plant technology and IP, similar to our he-mp/cann-a-bis program.
We are advancing commercial partnerships rather than competing with global hops producers, beer developers and marketers, flavor and fragrance suppliers, and nutritional/pharmaceutical companies in the hop plant space. The market participants are very well recognized brands, with Germany and the United States being the dominant global hops producers. The largest suppliers of hop plants include several large international growers in this market space that is uncrowded, namely Hopsteiner, Barth-Haas Group, Yakima Chief, Kalsec, and HVG. The largest manufacturers and marketers of beer are Anheuser-Busch InBev, Carlsberg, Molson Coors, and Tsingtao.
Progress To Date in Hops Market
We are approximately six months into our initial hops two-year development cycle and expect monetization of hop plant varieties and IP with upfront license fees beginning in 12 to 18 months.
We are advancing programs with established global hops producers, beer developers and marketers, flavor and fragrance suppliers, and nutritional/pharmaceutical companies in the hop plant space, and accelerating the development of disruptive hop plants and IP on applications delivered to consumers in traditional product formulations as well as in revolutionary new ingredients for functional foods and beverages such as “smart beer.”
In summary, we will not make your beer, we will make it better. The high interest among hops growers and their customers for new proprietary varieties with enhanced alkaloid profiles and specific agronomic traits, yield optimization, and disease/pest resistance is a perfect match to 22nd Century’s expertise in plant science and modern plant breeding, which will allow us to rapidly develop new, proprietary hop plants with distinctive flavors, aromas, and other valuable traits. We believe this significant expansion of our addressable market with the addition of hops as our third plant franchise is an exciting opportunity to leverage our capabilities and partnerships, accelerate the development of new revenue sources, and expand our global footprint.
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Grab the full company hops presentation here.
No. 2 Potential XXII Catalyst - Joining The Nasdaq Capital Market
22nd Century Group to Begin Trading on Nasdaq on August 16, 2021
BUFFALO, N.Y., Aug. 05, 2021 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc., a leading plant-based, biotechnology company focused on to-bacco harm reduction, reduced ni-co-tine to-bacco, and he-mp/cann-a-bis research, announced today that its common st-ock has been approved for uplisting to the Nasdaq Capital Market effective as of the market open on August 16, 2021. The shares will continue to trade under the ticker symbol “XXII.”
“While remaining dedicated to our primary mission to reduce the harm caused by smoking, uplisting to the Nasdaq also aligns 22nd Century with other high-achieving, innovative, and growth-oriented global science and technology companies,” said James A. Mish, chief executive officer of 22nd Century Group. “We believe that joining the Nasdaq will enhance our visibility to a wide audience of institutional in-vest-ors and increase our exposure to he-mp/cann-a-bis in-vest-ors at this important time of industry progression toward mass production.”
Read the full article here.
No. 3 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 Nasdaq profile with over 100% 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.