22nd Century Group Inc (NYSEMKT:XXII) shares jumped 6.87% on Tuesday to $1.40 and were unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.74 to $1.71. The company has a market cap of $126.98 million at $90.90 million shares outstanding.
22nd Century Group Inc announced that its wholly-owned subsidiary, NASCO Products, entered into substantial new manufacturing agreements for the production of filtered cigars and other tobacco products. These products are currently supplied to more than 250 distributors and wholesalers and more than 40,000 retail stores across the United States.
“Our manufacturing facility is a vital strategic asset for 22nd Century Group,” said Henry Sicignano, III, President and Chief Executive Officer at 22nd Century. “The factory enables 22nd Century to develop and manufacture the Company’s SPECTRUM government research cigarettes, our X-22 smoking cessation cigarettes in development, and 22nd Century’s proprietary MRTP candidates: BRAND A Very Low Nicotine cigarettes, and BRAND B low tar-to-nicotine ratio cigarettes. Now, considering the newly signed contract manufacturing agreements, our NASCO production facility will also contribute positively to 22nd Century’s bottom line.”
To accommodate this, 22nd Century Group Inc hired 37 new employees, more than doubling its workforce at the NASCO factory in Mocksville, North Carolina. Incorporating the projected revenues with current business, management projected that its 2017 total revenue projection will reach $16 million, up from its earlier $12 million forecast. Next year, the company predicts that total revenues will significantly exceed $20 million and that they will be cash flow positive.
22nd Century Group Inc is a plant biotechnology company that is focused on technology that allows increasing or decreasing the level of nicotine and other nicotinic alkaloids in tobacco plants, and levels of cannabinoids in cannabis plants through genetic engineering and plant breeding.
The company is engaged in various activities, including research and development of less harmful or modified risk tobacco products and tobacco plant varieties; development of X-22, a smoking cessation aid consisting of very low nicotine (VLN) cigarettes; manufacture, marketing and distribution of its RED SUN and MAGIC cigarettes; production of SPECTRUM research cigarettes for the National Institute on Drug Abuse (NIDA); contract manufacturing of third-party branded tobacco products, and research and development of plant varieties of hemp/cannabis, such as plants with low to no amounts of delta-9-tetrahydrocannabinol (THC), plants with high levels of cannabidiol (CBD), and other non-THC cannabinoids.