22nd Century Group, Inc. (XXII)

The company announced partnerships with multiple tobacco brands to expand the availability and awareness of its VLN® reduced nicotine cigarettes. Despite FDA endorsement for its low-nicotine VLN® products, the stock experienced a significant drop of 10.18% in pre-market trading due to financial challenges. The company reported revenues of $4.1 million, a decrease from the previous quarter, with a net loss of approximately $3.3 million in the second quarter of 2025. The company announced the launch of VLN® with a major C-store chain and continued expansion of state authorizations. The company announced the receipt of $9.5 million from the settlement of an insurance claim. Revenue from ongoing operations was $4.01 million in the third quarter of 2025. The company filed its VLN® MRTP Renewal, reinforcing its position as the only combustible tobacco product authorized by the FDA specifically to help smokers smoke less.

Demand seasonality for 22nd Century Group's products and services can be influenced by broader trends in the tobacco industry and smoking cessation. General cigarette consumption and the onset of youth smoking tend to be highest in the summer months, while sales of nicotine replacement products and demand for smoking cessation treatments typically peak in the winter months. Given 22nd Century Group's strategic shift towards its branded VLN® reduced nicotine content cigarettes, demand may also be influenced by regulatory changes, public health campaigns, and the increasing consumer awareness of harm reduction products.

22nd Century Group, Inc. is a plant biotechnology company focused on tobacco harm reduction and health improvement through plant science, operating in the Health Technology, Biotechnology, Consumer Non-Cyclicals, and Tobacco sectors. The company's core business revolves around its proprietary reduced nicotine content (RNC) tobacco, VLN® cigarettes, which are the first FDA-authorized combustible cigarettes with a Modified Risk Tobacco Product (MRTP) claim. The company is strategically shifting its focus from contract manufacturing to its higher-margin branded products, particularly the VLN® line.

22nd Century Group, Inc. is headquartered in Mocksville, North Carolina, United States. VLN® cigarettes are expanding their commercial footprint across the United States and are authorized for sale in 45 states as of late 2025. Key partnerships are driving this expansion, including stocking shipments for nearly 1,000 locations of a top-5 convenience store chain and a launch in approximately 140 Circle K locations in Illinois. The company is also expanding its VLN® launch in Colorado, which offers a reduced taxation rate for MRTP authorized products, and aims for broader distribution across all 50 states.

22nd Century Group has cultivated a brand reputation centered on its pioneering role in tobacco harm reduction through plant biotechnology. The company positions itself as a leader in developing reduced nicotine content tobacco products, with its VLN® cigarettes being the only combustible cigarettes authorized by the FDA with a Modified Risk Tobacco Product (MRTP) claim. Despite this positive positioning, the company has faced significant financial challenges, including operating losses and high debt, which led to a substantial decline in its stock price over the past year.

22nd Century Group, Inc. has a notable institutional ownership presence, with 33 institutional owners and shareholders holding a total of 243,685 shares. Major institutional owners include DRW Securities, LLC, Anson Funds Management LP, Tower Research Capital LLC (TRC), UBS Group AG, Morgan Stanley, Advisor Group Holdings, Inc., Group One Trading, L.p., Vanguard Extended Market Index Fund Investor Shares (VEXMX), BlackRock, Inc., and Bnp Paribas Arbitrage, Sa. Significant individual or fund owners include Opportunity Fund, LLC / Reda, Richard Abbe, Iroquois Capital Management L.L.C. / Kimberly Page, Gregory Castaldo, and Joseph Reda.