22nd Century Group Inc (XXII)

[jtsmgoblue]

I missed the call as well.

My understanding-someone on the call can correct if I misspeak. Buyout by Aurora has no impact on the licenses to a number of cannabis patents we were previously awarded in the US and co-licenses in ROW, save for Canada Buyout just revalued our equity position in Anandia for which we received cash. The patents run as far as mid 2030 and for the novice (me) cover a wide range of technology related to cannabinoids-active ingredients in the cannabis plants. These cannabinoids act/react on the cannabinoid receptors in humans. Most significant, XXII has indicated it has the ability to control or completely reduce THC. This would be most significant on the medical side and maybe with regulation even the mainstream side. If so, the value of these assets could be huge in the long term and maybe even greater than the market opportunity on the tobacco side.

Anyhow, IMO the MJ/hemp technology is somewhat under the radar and a hidden jewel in the XXII patent portfolio. I also believe it’s much too early to monetize unless there is a real or perceived outside competitive threat. I trust the XXII leadership team to do the right thing.

Now, all that said, I for one believe the potential value of XXII’s assets to be many, many, many multiples of the current 250M market cap. That potential can only be unleashed by the FDA and other ROW government agencies. IMO it will and I trust XXII leaders to monetize to the fullest extent.