22nd Century Group Inc (XXII)

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22nd Century Group Announces $5.5 Million Registered Direct

Today : Wednesday 3 February 2016


22nd Century Group, Inc. (NYSE MKT: XXII), a plant biotechnology company that is a leader in tobacco harm reduction, announced today that the Company has entered into an agreement with one existing institutional investor to receive $5.5 million in gross proceeds in a registered direct offering through the sale of common stock and warrants consisting of 5,000,000 shares of its common stock and 66-month warrants to purchase 2,500,000 shares of common stock at an exercise price of $1.21 per share (not exercisable for six months from issuance). If the warrants are exercised for cash in full, the Company would receive additional gross proceeds of approximately $3.0 million.

The offering is expected to close on or about February 5, 2016, subject to customary closing conditions, including approval of a NYSE MKT listing application. The net proceeds of the financing will be used for general corporate purposes, including working capital.

Chardan Capital Markets, LLC acted as the sole placement agent for this transaction.