22nd Century Group Inc (XXII)

[No-dough-go]

Streaming, I would seriously doubt it was Sabby selling as there have been no amended 13D's filed. It also isn't feasible that there was any shorting against the box since the volume doesn't bear that out. It seems more likely that the precipitous drop in August was caused by the below from the 10-Q:

The Company issued convertible notes on August 9, 2012 in a negotiated sale with 4 investors in the total face amount of $222,600. The convertible notes were sold for $210,000 - an original issue discount (OID) of $12,600. The convertible notes do not bear interest and the total face amount is due August 9, 2013 together with warrants equal to 50% of the number of shares of Company common stock into which such convertible notes are converted.

Then - In August 2013, the Company received notice of conversion (page 8) from the holders of the convertible notes with a face value of approximately $222,600 to convert the notes to common stock. I feel that these converted shares were sold as the selling occurred from August 5th through August 12th.

Since the notes were valued at $432,000 (page 8) based on the underlying share price of $0.60, that translates into 720,000 shares (including warrants) which pretty much coincides with the increased volume during that period. This means that these "investors" had a chance to reap $1m for a $210k outlay from a year ago. Pretty hard to pass up if you ask me.

However, I do agree that boredom has caused a few "non-serious" investors to abandon their positions.