22nd Century Group Inc (XXII)

[No-dough-go]

Thanks to you as well. While I'm at it I want to point out to others the significance of Sabby Capital's recent action.

The warrants that they converted into common shares and paid $1.25m for did not expire until January 11, 2014. Now, since there is a worldwide distribution agreement expected to be announced in Q3, they could have simply waited until after Q3's announcement to convert the warrants for the same price with no risk. Why might they convert them early?

Keep in mind that in order for them to get rid of 4.6m shares with the current volume, without destroying the price, it would take forever and probably involve bought runs or a massive promotion. My guess is that they are convinced that they'll reap huge profits AND be able to exit their doubled position without shooting themselves in the foot. In addition, this action eliminates the immediate need for cash which might otherwise cause a more dilutive event to occur.

It's very possible that Sabby Capital's action is a tell-tale sign that something positive is going to happen before long as most here already suspect.