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I believe it's also one of our largest raises. Typically they've been about 5-6 million and supposedly we had enough cash on hand to get us thru q1 2017. It's possible we have a partner lined up for x-22, but we weren't offered friendly terms because we weren't contributing money into the phase 3 trials. If a pharma company knows we're struggling for a partner they may be willing to put up the money but then want 75%+ of the rights when it hits the market. IMO
Anybody able to get access to the court transcript like last time?
As well as Henry trip to India in 2 weeks to sell 7 figures worth of Tobacco and Henry also believes that BAT will move forward with their agreement by Oct 2017. Henry also stated that if BAT didn't make a milestone payment that he might have to do funding in mid Sept.
There's definitely someone selling heavily into the news. Who? I don't know, but I think Henry needs to find better ways to raise financing in the future to prevent the dumping into stocks appreciation. This will probably continuing until there is a positive cash flow. All the recent news should eventually add additional revenue flows. It will just take time. Like others I don't see $1.50 until Sept at the earliest unless some partnerships are announced with will provide funding.
Nice start this morning! This rise might be more than a pump piece. Fingers crossed
Thought this was interesting.
‘Naked’ short sellers squeezed by Supreme Court
May. 16, 2016, 6:03pm by Nichole Wilson
In a sweeping blow to Wall Street investment giants, the U.S. Supreme Court today unanimously allowed lawsuits against "naked" short sellers in state courts to proceed.
The high court ruled unanimously that shareholders are not confined to federal court when seeking recourse for securities violations. Granting “due deference to the important role of state courts,” the Court reinforced federalist principles while clarifying congressional intentions to limit the federal government’s role.
The ruling, which could give a new boost to startups and small companies targeted by short sellers, showed a rare moment of ideological agreement in the court. Justice Elena Kagan authored the Court’s opinion, and Justice Clarence Thomas, joined by Justice Sonia Sotomayor, issued a concurrence.
In 2012, businessman Greg Manning sued Merrill Lynch and other financial institutions in New Jersey state court for purposefully devaluing his company through systematic “naked” short-selling — a term used to describe selling a stock a seller does not own and has not borrowed. In standard short sales, traders either borrow a stock or make sure that it can be borrowed prior to selling it short in the hope that its value will fall before the transaction must be covered.
The practice has come under increasing scrutiny and has been banned in Germany and other major economies.
Manning, the CEO of the memorabilia company Escala Group, Inc., owned two million shares of the company, which formerly traded on the NASDAQ and is now known as Spectrum Group International, Inc.
Manning’s claims against the financial institutions include the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) Act along with common-law claims for unjust enrichment, interference with economic advantage and contractual relations, breach of contract, breach of the covenant of good faith and fair dealing, and negligence. Today’s ruling will allow Manning to have his day in New Jersey state court.
“Respondents allege that ‘[t]he SEC has expressly noted that naked short selling involves the omission of a material fact' as part of their state-law securities fraud allegation,” Thomas wrote in his concurrence. "Vindicating that claim would not require the enforcement of a federal duty or liability. New Jersey law encompasses fraudulent conduct that does not necessarily rest on a violation of federal law or regulation.”
The ruling comes amid increasing scrutiny of the controversial practice at local and federal levels. After the 2008 financial correction, the Securities and Exchange Commission (SEC) tightened regulation of short-selling.
"False rumors can lead to a loss of investor confidence," the commission reported at the time. "Such loss of investor confidence can lead to panic selling, which may be further exacerbated by ‘naked’ short-selling. As a result, the prices of securities may artificially and unnecessarily decline well below the price level that would have resulted from the normal price discovery process. If significant financial institutions are involved, this chain of events can threaten disruption of our markets.”
Manning isn’t the first to claim investment firms colluded to devalue his company’s stock. In 2007, internet retail giant Overstock.com Inc. argued financial institutions deliberately schemed to devalue shares through naked short sales. Although Overstock faced similar jurisdictional hurdles throughout a nine-year battle, Goldman Sachs Group Inc. and Merrill Lynch Professional Clearing Corporation eventually settled RICO and securities fraud claims with the company.
While legitimate short-selling remains an accepted financial practice, manipulation by false rumors and naked short-selling has taken a serious toll on emerging industries. Biotechnology industry insiders have for years pleaded with the SEC to block the illegal short selling and false whisper campaigns that plague the industry. Smaller technology-driven companies frequently lack the resources to deal with attacks that drive down stock prices, crippling research and development budgets.
Monday's ruling could strengthen smaller innovative companies that are not situated to challenge investment institutions at the federal level.
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Cool thanks for posting
Wesley Smith on 5/17/2016 9:12:58 PM
Report TOS
Interesting to see Jonathan Page is a part of this as well.
Nice to see that the vp from Japan Tobacco will also be there. Hopefully they can have a side discussion on a potential partnership.
What's your opinion on the situation? Can XXII survive a lawsuit like this?
The yahoo message board is reporting that crede is suing XXII for 250 million for purposely sabotaging a large Asian venture.
It all comes down to personal preference. I had occasional smoked Marlboro lights in the past and I found the red sun to be just as smooth and not harsh. I was completely satisfied after half the cigarette and felt no need to smoke the rest. To put it in perspective I always thought Marlboro Reds were to harsh. In another situation I gave a few red Suns to Marlboro Red smoker who thought that Red Suns were a light cigarette because they weren't as harsh as a Red Sun. When I told him there was more nicotine in Red Sun he was surprised. As words spreads about potentially modified risk cigarettes I think people will be more open to switching. In the end we're selling Brand A or Brand B as a process that any tobacco company can license or buy us out right and apply to their brands flavor. XXII needed to create their own brands to bring awareness to the market and increase value of their patented portfolio.
In your opinion what brand has been more well received to date Magic or Red Sun?
Keep us posted. Thanks
Has there been a new short report since the CUISP change? Thanks
Red Sun is the same as Moonlight. Same technology high nicotine/low tar.
I would expect to get an update when magic ships by the end of the month. It's obvious that no one is going near this until more revenue guidance is provided or China comes to fruition. IMO shorts know this and continue to chip away at pps taking out retailers as they go and the whole Joe P debacle plays right into their hands. I could be wrong and retailers have just thrown in the towel. It's hard to watch as I never imagined we could reach prices before BAT and Sabby days. I continue to hold as I believe progress has been made with MSA and Red Sun now available on the market. I'm willing to take the risk and if Henry can come thru with his objectives by eoy the tide will turn.
That's really great news and good to hear momentum is building quickly. This part had me worried as it has been hard to gauge public perception. Thank you for sharing!
I know this is on the back burner but I can't think of another company at this valuation that has so many large opportunities ahead of them. As Henry stated one step at a time.
Hemp Legalization Trend To Drive Tobacco Stocks
Mar. 19, 2015 7:34 AM ET | by Lang Gibson | includes: bti, ityby, lo, mo, pm, rai
Summary
Tobacco stocks stand to benefit better than any other big business from the highest potential growth industry in America, that of hemp.
From production and packaging to marketing, Big Tobacco is already equipped to own and operate the promising and swiftly legalizing cannabis industry.
Hemp is the largest opportunity because hemp has historically been the lifeblood of the world economy, including America from its colonial days to 1937 and then during WW II.
Legislation filed in both houses of Congress would exclude hemp from the legal definition of marijuana.
PM is most in need of a strategy overhaul due to currency losses.
While tobacco stocks have relatively lofty valuations, they stand to benefit better than any other big business from the highest potential growth industry in America, that of hemp, cousin to marijuana, which had a 74% growth rate in 2014, to $2.7bn. The benefit of industrial hemp, which is non-psychoactive, and marijuana, both part of the cannabis family, is economic as well as health for people and planet. Some estimate that the global market for hemp consists of more than an astounding 250,000 products. China, Russia and South Korea account for 70% of the world's industrial hemp supply, with 30 other nations accounting for the remaining 30% share. Meanwhile, due to Federal law, America is the only industrialized nation with no industrial hemp production (outside of research uses), and is therefore dependent on imports with a negligible $300 million in annual retail sales.
Lexington Ave News; 212-535-8200; 1248 Lexington .; Near 85th street.
We definitely need Magic to rollout this month as promised. If XXII can continue to meet their deadlines hopefully that will help build shareholder trust again. On another note the Red Sun packs are very colorful and they really catch your attention. That could be a great marketing strategy to get people's attention. (Had a friend pick up a pack in NYC) Hopefully they are the best tasting tobacco cigs on the market because in the end that's all that matters. (Haven't smoked one yet)
Did anyone see the Moonlight products? What language is on those packs?
Next up!
Mr. Sicignano has defined 22nd Century’s top priorities as: establishing multi-year international sales contracts for the Company’s proprietary tobacco products (with immediate focus on Asia)
Awesome. Thanks
Can you find out which store?
Can you post?
With yesterday's new regarding the stock options that many of the executives received, is this good or bad? Henry mentioned on CC that they were advised not to buy. Is this an alternative to show confidence in the pps?
Sounds like China could be playing hardball as Henry made a comment that it takes two to come to an agreement after stating TP wanted it in 2014. I also wouldn't be surprised if China is putting pressure on the stock to swing negotiations in their favor.
Probably because China is close
I can respect that. Thanks
In your opinion is the CEO search a done deal or still in the works?
As previously reported, on October 25, 2014, our Board of Directors terminated the employment of Joseph Pandolfino, our former Chief Executive Officer, pursuant to Section 4.2 (Termination Without Cause) of Mr. Pandolfino's Employment Agreement and formed an Executive Committee of the Board, consisting of the existing independent directors, to assist our management until the Board completes its search for and selection of a new Chief Executive Officer. Although Mr. Pandolfino will not be re-joining us as an employee or officer, he remains a member of the Board of Directors.
Since October 2014, the Executive Committee has been primarily working with management to assist it with forming the proper strategic direction of our business and to streamline and organize our business in light of the termination of Mr. Pandolfino. The Executive Committee expects to hire a third party advisory firm during the first quarter of 2015 in order to assist with the search for and selection of a new Chief Executive Officer.
Ok maybe not field level.
No, but the dots connecting him to XXII sure would make sense.
Experience with Modified Risk Alternatives
BAT and XXII agreement
CEO opening in his field of expertise which would be a nice move for him.
Parker comments eluding that it's not an internal promotion. His comments are not always spot on but are usually in the ballpark.
Having Des resume at XXII will be a game changer for sure!
I would think the reasonable timeframe for China was outlined in the 8k back in Sept. I may not be reading this correctly but Peizer has been given a large incentive to get revenue in the bank within 2 year dated on sept 2014. Is that correct?
Below was taken from the 8k.
The Tranche 2 Warrants have a term of five years and vest and become exercisable only if 22nd Century Asia achieves revenues of at least $15 million in either of the two twelve month periods beginning on the Commencement Date (as defined therein) or revenues of at least $90 million during either of the two twelve month periods beginning on the first anniversary of the Commencement Date, and in each instance the Company must be cash flow positive from its investment in 22nd Century Asia.
The Tranche 3 Warrants have a term of five years and vest only if 22nd Century Asia achieves revenues of at least $45 million in either of the two twelve month periods beginning on the one-year anniversary of the Commencement Date (as defined therein) or revenues of at least $27 million in during either of the two twelve month periods beginning on the first anniversary of the Commencement Date, and in each instance the Company must be cash flow positive from its investment in 22nd Century Asia.
I believe that silence can possibly mean two things. The board is given Henry the opportunity to prove himself before announcing or they already have secured Des Naughton from BAT but can't announce until he officially leaves BAT at the end of Feb.
I thought this was an interesting article showing that ecigs aren't all that safe. FDA needs to fast track XXII brand A and B.
https://www.yahoo.com/health/hidden-high-levels-of-cancer-causing-108828992747.html?soc_src=mags&soc_trk=ma
Cigarette maker tries stock giveaway to boost sales
David Robinson Updated Thu, Jan 15, 2015 02:13 PM EST Henry Sicignano III knows he’s facing a mountainous challenge.
His company, 22nd Century Group, is trying to gain a toe-hold in the cigarette market for the Red Sun cigarettes that the Clarence company is gearing up to start selling.
But that won’t be easy. Tiny 22nd Century is up against the likes of Reynolds American and Altria – tobacco giants with more than $20 billion in annual sales and well-established brands such as Marlboro and Camel – in the battle for both consumers and space on store shelves.
22nd Century is the ant. Big Tobacco is the man who could squash the life out of the ant with one step and not even notice what had happened.
To go up against the Big Tobacco giants, Sicignano realizes that little 22nd Century needs to do something to stand out.
His idea: Give the Mom-and-Pop store owners he hopes to convince to sell Red Sun cigarettes the chance to own a piece of 22nd Century. Offer a similar deal to distributors. The more cigarettes 22nd Century sells, the bigger the piece of the company its retailers and distributors can accumulate.
Sicignano, 22nd Century’s president, calls it the Trade Partners Program. But really, it works more like a stock rebate program.
Here’s how it works: Under the program, 22nd Century will give $1 worth of its stock to distributors for every carton of Red Sun cigarettes they sell. Participating retailers will get $3 worth of 22nd Century stock as a rebate for every carton of Red Sun cigarettes they sell during 2015.
Sell 100 cartons, get $300 in 22nd Century stock. Sell 1,000 cartons, get $3,000 in stock. If the company succeeds – and the stock goes up – the shares could be worth even more down the road.
“This program is a mechanism for retailers to own stock in the brand they’re helping to build,” Sicignano said.
And 22nd Century needs their help. It’s starting from scratch. Its Red Sun cigarettes are just beginning to show up in a smattering of stores in selected markets, from New York City and San Francisco, to Boulder, Colo., and Portland, Ore.
Smokers have never heard of Red Sun. Store owners don’t have any pressing reason to carry a brand of cigarettes no one has heard of, made by an equally unknown company from the Buffalo suburbs. They all need a nudge to give Red Sun a try.
Sicignano hopes the stock rebates can provide that nudge.
22nd Century is marketing Red Sun as a super-premium cigarette – one that costs more, but one that also stands out from the mass-market cigarettes, much like craft beers are touted as an alternative to Budweiser and Miller.
It’s targeting small retailers, mostly mom-and-pop store owners, trying to convince them to carry Red Sun because it gives them a cigarette brand that you won’t find in 7-Eleven or your neighborhood supermarket. And as a super-premium brand, it also will be more profitable for them to sell.
“Our retailers are really more than our customers. They’re our sales force,” Sicignano said. “And a retailer would prefer a customer coming to his store to buy a product he can’t find elsewhere.”
In Sicignano’s ideal world, the company’s distributors talk up Red Sun to the small retailers they serve and convince them to give the new brand a try. And when a customer walks into one of those mom-and-pop stores, the owner points out that they’re now carrying Red Sun and suggests that the consumer give them a whirl because he knows that his store is the only one in the neighborhood that carries that brand.
Sicignano even is planning to frame the stock certificates that will go out to the store owners and distributors. Maybe they’ll hang the certificates on the wall behind the cash register, right next to the dollar bill from their first sale.
“It’s marketing,” Sicignano said. “They like to have collectibles and framed memorabilia on their walls.”
Sicignano said 22nd Century has been thinking about the program for the past two years. Years ago, Sicignano helped develop the Natural American Spirit cigarette brand for Santa Fe Natural Tobacco Co., which has since been snapped up by Big Tobacco’s Reynolds American. In those days, Sicignano said retailers asked him “countless times” how they could invest in the brand they were helping to build, but since Santa Fe was a private company, there wasn’t.
With 22nd Century’s stock rebate program, there is. The company has set aside up to 300,000 shares of its stock, worth about $429,000 at today’s prices, that it will give to distributors and stores as a rebate at the end of every quarter, based on how many cartons of its Red Sun cigarettes they sell. 22nd Century capped the value of the stock that it can issue under the promotional program at $3 million.
“We are offering retailers and distributors an extraordinary opportunity to become 22nd Century Group shareholders, and a strong incentive to grow Red Sun sales,” Sicignano said.
When you’re taking on Big Tobacco, you need every edge you can get.
New CEO?
If you look towards the end of the 8k that was filed yesterday it lists several cities. Does anyone think this is where red sun will be distributed? If so it's interesting to see Tokyo and Shanghai on the list. Maybe more news to come.
BOSTON
BRUSSELS
CHICAGO
DETROIT
JACKSONVILLE
LOS ANGELES
MADISON
MIAMI
MILWAUKEE
NEW YORK
ORLANDO
SACRAMENTO
SAN DIEGO
SAN FRANCISCO
SHANGHAI
SILICON VALLEY
TALLAHASSEE
TAMPA
TOKYO
WASHINGTON, D.C.