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For the last few months rumors have been circulating around western New York that Dr. Moynihan will be retiring, possibly by the end of the year. I would guess that Dr. Rushton will be Dr. Moynihan's replacement.
In response to your questions about TP, he makes his shares available to be shorted so perhaps "vengeance selling" is not the appropriate term.
And from the XXII PR released Sept. 18, 2014 Crede bought 3,871,767 shares of restricted stock for the purchase price of $10,000,000. My question is how does that equate to 10% of XXII?
Are you implying that TP already owns 10% of XXII? If so, where is that coming from?
Since we're offering opinions, I'll offer mine by saying I agree with Niagara that TP is the albatross hanging around XXII's neck. He blames current management for the failure to reach a deal with China, and he is very angry that in June of this year XXII offered a $6,000,000 Direct Offering to another institutional investor instead of him. His end-game is to take over the company and run it himself.
For what it's worth, the word around western New York is that Dr. Moynihan has been planning his retirement and that it may happen before the end of the year. So in this case, Perker may be correct. IMO he seems to enjoy yanking people's chains, but I don't think there is anything more sinister than that going on.
Didn't mean to spoil the party, and hey, it's always possible that XXII could pick tomorrow to release a PR. But speaking of buzz kills, I think it's more likely that the phantom short seller will show up Thursday and/or Friday and really try to ruin the day. It's long overdue for XXII management to come up with a plan to fight back against this heretofore unchallenged nemesis.
l wouldn't attach too much importance to tomorrow's meeting. Some Chardan people were coming to Buffalo and thought it might be a good idea to meet with a few shareholders. That's it. There should be an announcement about the Pando settlement coming out soon, but it is not connected to the meeting. Nor is any other upcoming PR.
After reading several recent posts, I feel the need to add my 2 cents. The word around western New York is that Smoker Friendly has recently finalized a deal with Dollar General to sell the Smoker Friendly private label cigarette brand (not RedSun or Magic)in about 1000 Dollar General stores. Since XXII is currently manufacturing all Smoker Friendly brand cigarettes, they theoretically should see an increase in production demand.
As Mike implied, Dollar General stores are not a "target outlet" for RedSun and Magic at this time. And finally, to my knowledge there was no mention of cigars in this deal. When this deal is announced, I am confident that it will be very close to what I have stated here. GLTA.
Perker, On May 21st, XXII announced a deal with Rich & Rhine, a tobacco distributor based in Portland, Oregon. Are you suggesting that there is another deal taking place in Portland?
Henry was ambushed. That's what Fox Network talking heads do. XXII stock was ambushed too. None of this changes the XXII narrative. The company is moving forward.
Members of XXII management team should be leaving for China this weekend.
I'm not sure what point you're trying to make, but I believe that Nathan Schmitt, from "Investor Relations" was doing his job when he responded to my e-mails. If, in the future, there are other issues that, in my opinion, have not been adequately dealt with, I will continue to e-mail them.
Over the past couple of months I've sent XXII several e-mails, which contained questions, complaints, suggestions, encouragement, etc. I am now very pleased to report that yesterday I received a reply from Nathan Schmitt, XXII Investor Relations. It was not just some generic response either. Mr. Schmitt took the time to address all of my questions and concerns, and while I can't say that he and I are in complete 100% agreement on every issue, I am very pleased that the lines of communication are open. Dialog is good. Transparency is good. Thank you XXII management for hiring Mr. Schmitt.
XXII article in this mornings Buffalo News titled "Cigarette Maker Tries Stock Giveaway to Boost Sales". I expect more news to follow this week.
Gio,
I must disagree with your statement that 2014 was a terrible year for XXII. While "XXII the stock" has been a disappointment to some (unless you are taking advantage of the low SP and adding to your position), I believe that "XXII the business" has had a very successful year. Just to name a few of their accomplishments, in the last 12 months XXII has acquired a 61,000 square foot manufacturing facility in Mocksville North Carolina, has become a participating member of the MSA, has reached an agreement with Smoker Friendly to sell RedSun cigarettes and manufacture the SF private label brand, and has contracted with Europe to manufacture and/or sell tobacco in several countries. So, while one may argue that "XXII the stock" has been adversely affected by delays, management issues, etc., I believe that "XXII the business" is in a much stronger position than it was back in March when the stock was trading at $6.00+.
I also believe that the current XXII management team has come a long way and learned a great deal over the past year. They will be more cautious with their predictions, especially with events that they don't have complete control over, and they will be more forthcoming with information that relates to shareholders.
That being said, I would be very surprised if XXII did not put out a press release before the end of the year. I suspect that those of you waiting for a "China Deal" to be announced will be disappointed. Henry made it very clear in the November CC that while it could happen in the first quarter of 2015, it is more likely to happen in the first half of 2015. What I do expect is an update on the SF deal involving the sale of RedSun and the manufacture of the SF private label brand. I would also expect to hear an update on the progress being made in Spain, Poland, the Netherlands, and the rest of Europe. Finally, I would expect to hear about new employees being hired, both at the Mocksville Plant and possibly at the headquarters in Clarence, New York. I couldn't help but notice a dumpster sitting outside the Clarence HQ for a couple of weeks or so earlier this month. It looked like they were adding office space, perhaps gearing up for telephone operators/order takers or something along those lines.
In closing, while I think that 2015 will be a phenomenal year for XXII, I also think that 2014 was a year to be proud of. The groundwork has been laid, and now it is time for the commercialization phase to begin. I am very confident in the current management team, and believe that they will continue to deliver until the share price reflects the success of the business model. This post is not a recommendation to buy, sell, or hold XXII stock. It is merely the opinion of one longtime share holder who is satisfied with the way things are progressing. Do your own DD before investing. Happy New Year to all.
Unfortunately Tom, the rest of the states are just like Maine. XXII is required to register with each individual state before it can sell cigarettes in that state. It is my understanding that XXII has sent out all of the necessary forms, and is anxiously awaiting their return. Due to this additional "red tape" and the current management shake-up, I don't expect to see XXII cigarettes for sale in the U.S. until January 2015.
I believe it was Henry's wife that just had a baby.
XXII is currently manufacturing Red Sun cigarettes, which are being marketed through the Smoker Friendly outlets at this time. The January 2015 contract is for XXII to begin manufacturing the Smoker Friendly private label cigarette brand.
In January 2013, Goodrich Tobacco Co. applied to the Alcohol and Tobacco Tax Trade Bureau of the U.S. Treasury Dept. (TTB) for a federal permit to manufacture its own tobacco products. The manufacturing facility, located in Depew, New York was inspected in November of 2013, and a permit was issued in March of 2014. It is important to note that although the permit would allow XXII to manufacture cigarettes, they would have been doing so as a non-member of the MSA.
Once the Nasco deal entered the picture, the Depew facility became a back-up plan for the following reasons:
- Nasco was a participating member of the MSA
- if memory serves me, the Depew facility was 3000 square feet versus the Mocksville plant, which is 61,500 square feet.
- the cigarette manufacturing equipment purchased out of bankruptcy by XXII in December of 2013 was already located in Mocksville, N.C.
I currently have no knowledge of the amount or location of acreage available for the growing of XXII proprietary tobacco. If presented with the opportunity, I will ask the question and pass on any information that I receive.
This morning I talked to a friend of mine who is friends with several members of XXII management, and he basically reiterated what Pete stated in his post from 9/5/14. XXII is currently manufacturing Red Sun and Magic brand cigarettes, which should be showing up on Smoker Friendly shelves very soon. I'm from western New York and we don't have any SF outlets here, but maybe someone who has one nearby can check that out. The Nasco contract with SF is to produce their private label brand, and will commence in January of 2015.
In response to another recent post, it is my understanding that the Mocksville, North Carolina plant can produce somewhere around 7000 cigarettes per minute. Sounds like a lot to me, but I'm not very familiar with cig mfg capacities. Finally, it is also my understanding that the proposed Goodrich Tobacco mfg facility in western New York has been terminated. Good luck to all who believe in XXII. I know I do!
PR just came out. Nasco referred to as a participating member of MSA, entered into a multi-year agreement with Smoker Friendly International.
Trying to get a handle on how things will play out for XXII since it's inclusion into Russell Investments:
May - ranking month
June 13 - preliminary list
June 20 - updates to list
June 27 - more updates to list
June 27 - after market close, reconstituted indexes take effect
Does this mean that required or "forced" buying (and selling, of funds that are dropped) will commence on June 30th, or can it begin on June 27th? Also, do investor's have 5 trading days to complete this required buying, which, I believe, totals somewhere around 2.8 million shares.
Finally, I suspect that non-Russell investors would be interested in lowering the price of XXII, buying as much as possible, and then reselling it at a higher price during the required buying period. I believe we may have seen some of that already on Monday.
Please let me know if I got anything wrong. Your thoughts and opinions would be greatly appreciated.
nano,
The federal permit to produce tobacco products issued by the TTB is for a proposed manufacturing site in Depew, New York. In order to use this facility, XXII would have to ship it's recently
purchased tobacco mfg equipment from North Carolina to Depew. With
MSA membership imminent, via the Nasco deal, it is unlikely that they would choose to do this.
However, since Goodrich Tobacco has also applied to NAAG to become a participating member of the MSA, it is possible that the Depew site will figure into future XXII plans.
FYI, Sabby sold their last 1.6mm shares in a private deal, on Feb. 14th, 2014. XXII now has 10 market makers associated with it. As stated in the March 6th, 2014 press release, Virtu Financial is the Designated Market Maker.
xoxoxxii
I just read that XXII is currently scheduled to ring the opening bell at the New York Stock Exchange on Tuesday, June 17, 2014. Should be a fun day!
XOXOXXII
Jock,
I did attend the 9/28/13 stockholders meeting, and was fortunate enough to spend a few minutes talking to Terry and his wife; both are very intelligent and very gracious.
This years mtg, as I believe was previously posted, will be April 12th, 2:00pm, at Spaulding Lake Clubhouse, Clarence, New York. I suspect there will be a lot of good news between now and then. Hope to see some of you there.
Dane,
There is at least one indication that XXII has a deal with a Colorado based company that is ready to sell their tobacco products. Those who attended last years annual shareholders mtg may remember that the keynote speaker was Terry Gallagher Jr. In the flyer that was handed out, it stated that Terry is the president of The Cigarette Store Corp., which operates 86 Smoker Friendly tobacco, gasoline, and liquor stores in the mountain states region. It also stated that in 2005, Terry began serving as Managing Partner of Smoker Friendly International (SFI), which owns and operates over 800 tobacco and convenience stores across the U.S.
It should also be noted that Terry and Henry Sicignano had a business relationship and became friends during Henry's time at Santa Fe Natural Tobacco Co. They remain friends today, and both are very anxious to resume their business relationship once XXII establishes their MSA membership. The flyer also mentioned that Terry lives with his wife in Boulder, Colorado.
If you had a chronically ill loved one who experienced relief from pain, or some other benefit from the use of medical marijuana, wouldn't you be in favor of a safer version of that therapy? That is the goal XXII has been working toward for some time now. It is the next "other opportunity" you will be hearing more about in 2014. It has not been publicized as yet because it is still considered to be a "wild card".
Upon completion of the plant inspection on 6nov13, XXII
was told by TTB that they should receive their federal license
to manufacture tobacco products in 60 to 90 days. I'm not sure
if membership in MSA will happen simultaneously, or if that is
a separate process.
Don't mean to pile on XXII at this time, but there seems to me
to be at least one more "negative" factor out there. I believe
there are approximately 9,000,000 outstanding warrants that need
to be dealt with. Because XXII ended up with a relatively small
"research" deal, as opposed to a much larger "commercial" deal,
the only option they have in cashing out existing warrants is to
issue more shares of stock. This will, in effect, dilute the
number of outstanding shares by 15 or 16%.
I tend to agree with "Mitch" that the long term future of
XXII looks very bright, but as with most OTC stocks, there
surely will be some short term bumps in the road. Any info, thoughts, or opinions from other investors would be greatly appreciated.
I, myself, am not familiar with SEC rules, but as Emily said,
Henry stated that there were several topics that they could not discuss. They had their lawyer present. In retrospect, I should have asked him about it, but didn't think of it at the time.
I would like to corroborate, in part, Emily's summation of the
shareholder's meeting. I was there, and I'm the guy who asked the
question. I specifically asked " In an earlier press release, you
stated that you expect 22nd Century to reach a deal with a large
tobacco company by the end of the third quarter. Do you still expect that to happen?" As Emily said, their response, with big smiles, was "We stand by the June 10th statement." After some murmuring about the current date and the time frame, Henry and Joe
both repeated "We stand by the June 10th statement."
In order to refresh my own memory, I went back and read the
June 10th press release. The pertinent part is as follows:
"22nd Century has been in negotiations with multiple companies in the tobacco and pharmaceutical industries for licensing of its technology and products. The company expects to finalize one or more major licensing agreements in the third quarter of 2013.
The third quarter of 2013 ends Monday. I am confident that a deal will be announced on or before Monday. Feel free to draw your own conclusions. Good luck to all, and thank you Emily for your very accurate summary of the meeting.