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MOCKSVILLE, N.C. - 22nd Century Group, Inc. (NASDAQ:XXII), a small-cap biotech company currently trading near its 52-week low with a market capitalization of $5.6 million, announced Thursday the launch of its VLNⓇ reduced nicotine content cigarettes at approximately 140 Circle K locations in Illinois. According to InvestingPro analysis, the company appears undervalued despite facing significant challenges, with analysts projecting sales growth and a return to profitability this year. The company reported that its VLNⓇ cigarettes are now authorized for sale in 45 states, with approvals pending in the remaining five states.
The Illinois expansion marks a return to one of the company’s initial markets from 2022. As part of the rollout, the company has introduced new marketing and consumer education materials featuring its complete line of VLNⓇ combustible cigarette products. While the company’s revenue reached $21.36 million in the last twelve months, InvestingPro data reveals several additional growth metrics and industry insights available to subscribers, along with a comprehensive Pro Research Report that provides deep-dive analysis of the company’s strategic initiatives.
"Illinois was the first market we entered in 2022," said Larry Firestone, Chief Executive Officer of 22nd Century Group, according to the company’s press release.
The VLNⓇ cigarettes contain tobacco with 95% less nicotine than traditional cigarettes. The company stated that this reduced nicotine level has been shown in clinical studies to reduce smoking rates. Despite current negative gross profit margins, analysts tracked by InvestingPro expect the company to achieve profitability this year, potentially supporting its innovative product strategy. The products comply with the FDA’s proposed Tobacco Product Standard for Nicotine Yield of Cigarettes and Certain Other Combusted Tobacco Products published in January 2025.
In addition to its own branded products, the company has expanded authorizations for partner brands, with Smoker Friendly VLNⓇ and PinnacleⓇ VLNⓇ now approved in 38 states each.
22nd Century Group develops its reduced nicotine tobacco using patented technologies that regulate alkaloid biosynthesis. The company’s VLNⓇ cigarette is currently the only low nicotine combustible cigarette authorized by the FDA in the United States.
This information is based on a company press release statement.
In other recent news, 22nd Century Group, Inc. announced significant developments impacting its financial position and future strategy. The company has reached a $9.5 million settlement for business interruption claims related to an incident at its Grass Valley facility in November 2022. This settlement, which provides non-dilutive capital, is expected to be paid by insurers within 45 days, offering the company growth capital as it targets profitability by 2026. Additionally, 22nd Century Group has fully repaid its remaining $3.9 million of senior secured debt. This debt repayment follows the closing of its Series A convertible preferred stock offering, which contributed to an approximate $9.1 million increase in adjusted pro forma net tangible book value. Furthermore, 22nd Century Group has publicly supported the FDA’s proposed standard to reduce nicotine levels in cigarettes and certain tobacco products. The company claims this rule could prevent millions from starting smoking and avert tobacco-related deaths, based on FDA models. These recent developments highlight 22nd Century Group’s strategic financial restructuring and commitment to tobacco harm reduction.
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