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MOCKSVILLE, N.C. - 22nd Century Group, Inc. (NASDAQ:XXII), trading near its 52-week low at $2.24 and showing a -98% year-to-date return according to InvestingPro data, has shipped its first stocking orders of Pinnacle-branded VLNⓇ reduced nicotine cigarettes in August, the company announced Wednesday in a letter to shareholders from CEO Larry Firestone.
The Pinnacle partnership represents the second established brand to adopt 22nd Century’s VLNⓇ technology, following Smoker Friendly. The company’s VLNⓇ cigarettes contain 95% less nicotine than traditional cigarettes while maintaining a familiar smoking experience. Despite challenging gross profit margins of -14.44%, analysts tracked by InvestingPro anticipate sales growth in the current year.
The company is also developing additional product formats, including 100mm cigarettes, international versions, and filtered cigars using its proprietary non-GMO reduced nicotine tobacco.
Firestone highlighted the FDA’s proposed Tobacco Product Standard for Nicotine Yield, which would establish a 0.7mg/g maximum nicotine content standard. The proposed rule, which has a September 15 comment deadline, was developed using clinical testing of 22nd Century’s products.
"It is no longer debated whether a VLNⓇ based future is possible — it is clear with our help, tobacco-based products can fully transition to a reduced nicotine version under any and every brand," Firestone stated in the letter.
The company is also investigating potential links between its low nicotine tobacco genetics and reduced levels of tobacco-specific nitrosamines (TSNAs), which are carcinogens found in tobacco products.
22nd Century Group describes itself as the only company with FDA-authorized reduced nicotine combustible tobacco products. The company plans to submit its Modified Risk Tobacco Product (MRTP) renewal application to the FDA by year-end.
The information in this article is based on a press release statement from 22nd Century Group.
In other recent news, 22nd Century Group reported its Q2 2025 earnings, highlighting a change in strategic direction and mixed financial results. The company experienced a decline in net revenue, which fell to $4 million from $6 million in the previous quarter. This financial performance came despite the launch of new products aimed at driving growth. These developments were part of the company’s earnings call on August 14. The announcement of these results led to a negative reaction in the premarket. The stock dropped by 10.11% to $2.40 following the earnings call. The company’s shift in focus and its impact on financial performance are likely to be of interest to investors and analysts alike.
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