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MOCKSVILLE, N.C. - 22nd Century Group, Inc. (NASDAQ:XXII) announced plans to develop a 100mm version of its VLNⓇ reduced nicotine content cigarettes, with an FDA submission targeted for Q4 2025. The company, currently valued at $2.28 million, is working on this expansion despite challenging financial metrics. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The new product would expand the company’s existing line of FDA-authorized 84mm king size VLNⓇ cigarettes. According to the company, 100mm cigarettes represent approximately half of the U.S. cigarette market.
If authorized, the 100mm product would be available under both the VLNⓇ brand and through partner brands including Smoker Friendly and Pinnacle.
"By adding a 100mm VLNⓇ cigarette, which is preferred by approximately half the U.S. smoking population, we can reach even more customers who want to benefit from VLNⓇ products and take control of their nicotine consumption," said Larry Firestone, 22nd Century Group Chief Executive Officer, in a press release statement.
The company’s existing VLNⓇ cigarettes contain 95% less nicotine than traditional cigarettes while maintaining full flavor, according to the company. These products previously received Modified Risk Tobacco Authorization from the FDA, making them the first and only combustible cigarettes to receive this designation.
22nd Century Group manufactures its reduced nicotine products at a 60,000 square foot facility in Mocksville, North Carolina, which has the capacity to produce more than 45 million cartons of combustible tobacco products annually.
The company stated that independent clinical studies have shown that cigarettes containing its patented low nicotine tobacco can lead to reduced cigarette consumption, increased quit attempts, and decreased cigarette dependence among smokers. While analysts expect net income growth this year, the company faces financial challenges with its current debt structure.
In other recent news, 22nd Century Group reported a notable increase in net revenue for the first quarter of 2025, reaching $6 million, which represents a 50% sequential rise. Despite this growth, the company experienced a net loss from continuing operations of $3.3 million, with earnings per share at a loss of $1.89. The company is also implementing a reverse stock split at a 1-for-23 ratio to maintain compliance with NASDAQ’s listing standards. Furthermore, 22nd Century Group announced an expansion of its product line, including the launch of Pinnacle VLN Gold and Menthol cigarettes, which contain significantly reduced nicotine levels. These products are expected to be available in 1,700 stores across 27 states by late 2025, pending approvals. Analyst discussions from firms like Emerging Growth Research indicate a positive outlook for the company’s growth trajectory, with expectations of reaching EBITDA breakeven by late 2025. The company’s strategic moves, including a capital raise of $5.4 million, are aimed at supporting its growth initiatives. Additionally, 22nd Century Group is involved in a lawsuit against Dorchester Insurance Company, with a trial date set for November 2025.
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