22nd Century Group Inc (XXII)

[No-dough-go]

It's very tough to say for a couple of reasons. It is not known if the agreement is for licensing the technology or distributing their products. In addition, if it is a distribution agreement, we still don't know which product. My guess is that it's related to the proprietary tobaccos and/or technology (best case) since the smoking cessation product is still considered in development.

However, just as a point of reference, from the June 8-K the company has intimated that it will be expanding the distribution of "RED SUN® and MAGIC® brands in the second half of 2013." The Benelux deal for DUTCH MAGIC alone is worth a minimum of $5m over 3 years so I would GUESS that a virtual worldwide agreement from a large company like BATS would result in a lot more than $30m over 3 years.

I suppose it's only natural to try and predict prices but I'd be hesitant to do that before knowing the critical elements on which to base that prediction as it can produce disappointment or elation and cause one to sell too early. Added to which, we're talking about a proprietary product and there's absolutely no way to know how vehemently the market would react to such an announcement.