22nd Century Group stockholders approve share increase and reverse split measures

22nd Century Group, Inc. (NASDAQ:XXII), a company with a market capitalization of $1.59 million and trailing twelve-month revenue of $23.87 million, announced a series of approvals from its annual meeting of stockholders held Tuesday, according to a press release statement based on its latest SEC filing. According to InvestingPro analysis, the company currently shows signs of being undervalued despite facing significant operational challenges.

Stockholders approved an amendment to the company’s Articles of Incorporation to increase the number of authorized shares of common stock from 250 million to 500 million. The amendment was filed and became effective with the Secretary of State of Nevada on Tuesday.

The meeting also authorized the board of directors to implement a reverse stock split of the company’s outstanding common stock at a ratio between 1-for-2 and 1-for-100. The reverse split is intended to help the company comply with Nasdaq listing requirements. The board retains discretion to determine the exact ratio and to abandon the amendment if deemed necessary.

Other proposals approved by stockholders include the election of Lawrence Firestone and David Keys as Class II directors to serve until the 2028 annual meeting, and an advisory resolution to approve executive compensation for fiscal year 2024. The frequency of advisory votes on executive compensation was set at once every three years.

Shareholders also ratified the appointment of Freed Maxick CPAs, P.C. as the company’s independent registered public accountants for 2025.

Additional approvals included amendments to the 2021 Omnibus Incentive Plan to increase the number of shares authorized for issuance by five million, as well as authorizations for the issuance of shares related to certain warrants and convertible debentures in accordance with Nasdaq rules.

All proposals were approved by the requisite majority of votes cast at the meeting.

The information is based on a press release statement and details disclosed in the company’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, 22nd Century Group reported a notable increase in net revenue for the first quarter of 2025, rising by 50% to $6 million. Despite this growth, the company recorded a net loss of $3.3 million, with earnings per share at a loss of $1.89. The company also announced plans to develop a 100mm version of its VLNⓇ reduced nicotine cigarettes, targeting an FDA submission for Q4 2025. Additionally, 22nd Century Group is expanding its Pinnacle product line with a launch in approximately 1,700 stores across 27 states, pending state approvals. The company introduced a reverse stock split at a ratio of 1-for-23 to maintain compliance with NASDAQ listing standards. Analysts have noted the company’s strategic focus on innovation and market expansion, with firms like Emerging Growth Research showing interest in their growth trajectory. 22nd Century Group’s CEO, Larry Firestone, expressed confidence in the company’s reconfigured business model, emphasizing the aim for EBITDA breakeven by late 2025.

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