22nd Century Group Inc (XXII)

[rightcoast1]

Post-call excerpt from Bradley Woods analyst report:

XXII: 22nd Century Group, Inc.
?Company Update -- Buy | $7 Target
March 12, 2021
Equity Research Company Note
Company Data
Price: $2.70
52-Week Range: $0.55-$4.66
Mkt. Cap ($m): $403.9
Shares (m): 149.6

Expect Multiple Catalysts this Year. Reiterate Buy.

We expect multiple catalysts this year can drive 22 nd Century shares higher. The most likely near-term catalyst is approval of the company’s MRTP application with the FDA. Second, the company believes it can begin monetizing its hemp intellectual property this year with one or more licensing deals of plants with specific combinations of cannabinoids. The revivification of the low-nicotine mandate is possible this year. Also, the company will announce development of a third, plant-based franchise after its MRTP application is approved.

It has been just over a year since the company presented to the Tobacco Products Scientific Advisory Committee (TPSAC) and with the pandemic receding, and a new administration implementing its policies we believe conditions are favorable for approval. The company is committed to a commercial launch of VLN cigarettes within 90 days of MRTP approval and is in active discussion with retailers and distributors. The initial stage will be to select markets to test customer acceptance, pricing, and marketing. This will continue for a few months and recalibrated as the roll-out expands.