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In a tumultuous trading session, 22nd Century Group, Inc. (NASDAQ:XXII) stock has been battered to a 52-week low, with shares plummeting to $3.03. According to InvestingPro data, this represents a staggering 99% decline from the stock’s 52-week high of $581.85, with particularly concerning metrics showing the company’s market capitalization has shrunk to just $5.34 million. The significant downturn reflects a broader market sell-off, casting a shadow over the biotech company known for its tobacco and cannabis research. This latest price level marks a stark contrast to the stock’s performance over the past year, which has seen an alarming 1-year change of -99.06%. Investors are grappling with the implications of this steep decline as the company navigates through a challenging economic landscape, with InvestingPro analysis revealing concerning fundamentals, including negative EBITDA of -$23.26 million and rapidly depleting cash reserves. InvestingPro subscribers have access to 15 additional key insights about XXII’s financial health and future prospects.
In other recent news, 22nd Century Group has made significant strategic changes to manage its financial health and maintain its Nasdaq listing. The company has adjusted the conversion price of its senior secured credit facility to $6.04 per share, a decision made in collaboration with JGB Partners, LP, JGB Capital, LP, JGB Capital Offshore Ltd., and JGB Collateral, LLC. This adjustment is in line with the company’s efforts to effectively manage its debt obligations.
The company has also announced a 1-for-135 reverse stock split to counteract a delisting notice from Nasdaq due to non-compliance with the minimum bid price requirement. This move reduces the number of outstanding shares with the aim of proportionally increasing the share price, a strategy aimed at rectifying the listing deficiencies.
Furthermore, the company has received shareholder approval for a series of proposals, including an amendment to effect a reverse stock split of its common stock. This step could potentially increase the market price of the company’s common stock, thereby maintaining its listing status on the Nasdaq Capital Market.
In addition, shareholders have approved the issuance of shares of common stock upon the exercise of various warrants issued throughout 2024, and an amendment to the outstanding convertible Debentures. These recent developments reflect confidence in the company’s strategies to maintain compliance with trading regulations and potentially enhance shareholder value.
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