$heff's $tation of $tocks & $olid DD

[BioHunter]

Portfolio Update $XXII purchasing here .80

This is a speculative play with a compelling risk reward in my opinion. You can trade for the 2H FDA catalyst or company should be compelling long term investment. $XXII is not your typical biotechnology play, there tech is in the plant biology space, both in the tobacco field with VLN (Very Low Nicotine) and cannabis space. Nicotine is the addictive part of cigarette smoke, studies are suggesting lowering the nicotine lowers consumption and is a valuable tool in the muli billion dollar smoking cessation space. FDA and WHO (World Health Organization) are catching on. Interesting few months ahead, I like this to move back over a dollar as we get to Sept and if they move the FDA to approve label Modified Risk, stock should be 5X.

Here is what I like:
61m market cap
76m shares outstanding
39% held by insiders
700 billion/yr addressable market

Yesterday’s news: World Health Organization Recommends “Mandated Reductions in Nicotine to Minimally Addictive Levels
http://finance.yahoo.com/news/world-health-organization-recommends-mandated-171500015.html

The WHO mandate seems to be a game changer for $XXII, up next FDA

Modified Risk Tobacco application currently under review by FDA with Q4 catalyst time frame. This would be the ONLY Modified Risk Tobacco product approved in the USA
http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=81533178&webmasterId=102059

CEO knows the industry as Marketing Director of Santa Fe Natural Tobacco Company, a specialty tobacco company, prior to the sale of that company to R.J. Reynolds Tobacco Company for $356 million.

Proprietary tech world wide patents on tobacco plant gene modifying tech which produces tobacco with 97% less nicotine
Launched Magic brand VLN cigarettes in Spain recently with more deals expected 2H 2016

‘Six independent clinical trials (five Phase II trials and one Phase III trial treating an aggregate of 2,438 total smokers) that utilized cigarettes made from 22nd Century’s proprietary tobacco have all demonstrated efficacy. Indeed, each of these independent clinical trials using very low nicotine (VLN) cigarettes showed increased quit rates, whether VLN cigarettes were used alone or used concurrently with other smoking cessation products.’

Note- "light" cigarettes are not the same as VLN. Light cigarette labeling was removed by FDA and does not offer a less toxic cigarette.

New England Journal of Medicine on low nicotine cigarettes
http://www.nejm.org/do/10.1056/NEJMdo005032/full/?requestType=popUp&relatedArticle=10.1056%2FNEJMsa1502403&;

DD Links
$XXII technology
http://www.xxiicentury.com/technology/
Jason Napodano has been the main guy covering the stock, here is his in depth look:
Initial coverage report
http://www.bionapcfa.com/2016/03/srnt-abstracts-on-spectrum-cigarettes.html
http://www.bionapcfa.com/2016/05/22nd-century-licenses-revolutionary.html
CEO Interview
http://www.bionapcfa.com/2016/04/interview-with-22nd-century-ceo.html
SRNT Abstracts
http://www.bionapcfa.com/2016/03/srnt-abstracts-on-spectrum-cigarettes.html

Also covered by Chardan
http://www.xxiicentury.com/files/XXII_2016-05-16.pdf
Rodeman&Renshaw Report
http://www.slideshare.net/ProActiveNewsRoom/xxii-rodman-renshaw-research-report-may-2011
MicroCap Research
http://microcapresearch.com/22nd-century-group/

Based on CEO comments $XXII will probably do a private placement at some point in 2H 2016 to extend their cash runway. With management owning 40% of the company they are going to be careful with shareholder dilution, IMO

-BioHunter