QinetiQ profit beats forecasts despite dip in revenue
22nd Century Group, Inc. (NASDAQ:XXII) announced Tuesday it has entered into a Sales Agreement with Needham & Company, LLC to offer and sell up to $25 million of its common stock in an at-the-market (ATM) equity program. According to a press release statement, the company may issue shares from time to time through or to the sales agent, with no obligation to sell any specific amount.
Under the agreement, 22nd Century Group will pay Needham & Company a commission of 3% of the gross proceeds from each share sold. The company will also reimburse certain legal counsel fees up to $100,000 for establishing the ATM program and $10,000 for each periodic update. Shares will be sold as “at the market offerings” in accordance with Rule 415 under the Securities Act of 1933. The offering is registered under the company’s existing shelf registration statement.
The company stated it intends to use any net proceeds for general corporate purposes, including expansion and acceleration of its VLN reduced nicotine content tobacco cigarettes, research and development, intellectual property procurement, and working capital.
The Sales Agreement will remain in effect until all shares are sold or the agreement is otherwise terminated. A legal opinion from Foley & Lardner LLP regarding the legality of the securities issuance was also provided as part of the filing.
In a separate development, the company disclosed it has entered into new executive employment agreements with certain named executive officers, effective Monday. The agreements specify initial terms ranging from 36 to 42 months, with automatic one-year renewals unless notice is given. Base salaries include $425,000 for Chief Executive Officer Lawrence Firestone and $315,000 for Chief Financial Officer Daniel Otto. The agreements outline severance payments and COBRA continuation periods in the event of qualifying terminations, both during and outside of a change of control period.
These disclosures were made as part of a Form 8-K filed with the Securities and Exchange Commission. An earnings release for the quarter ended September 30, 2025, was also provided as an exhibit to the filing.
In other recent news, 22nd Century Group Inc. has announced a significant $9.5 million cash settlement from an insurance claim related to a business interruption incident at its Grass Valley facility in November 2022. This settlement is expected to bolster the company’s balance sheet as it continues to focus on growth initiatives. The company has also expanded its VLNⓇ reduced nicotine cigarettes to approximately 140 Circle K stores in Illinois, marking a return to one of its initial markets from 2022. Currently, these cigarettes are authorized for sale in 45 states, with pending approvals in the remaining five. Additionally, 22nd Century Group has publicly supported the FDA’s proposed nicotine reduction standard, which aims to lower nicotine levels in cigarettes and other tobacco products. The company claims the proposed rule could significantly impact public health by preventing millions of youth and young adults from starting smoking. As these developments unfold, the company remains debt-free and is restructuring its finances with a target of achieving profitability by 2026.
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