![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Sunday, January 05, 2014 12:29:34 PM
What XXII has going for it, in my view, is the extreme value of the patents and the fact that there are numerous opportunities for success.
First, there is the BAT license to se the patents in research. Given the $7M up front payment and the continuation payment, I have to believe that it is likely that BAT may develop a product they want to distribute. That would require a commercial license and put money in the pocket of XXII. Moreover, such a commercial license would likely encourage other major tobacco companies to license the use of the patents, for even more money. In such a situation, BAT would likely want to buy out XXII, but that might cause a bidding war with other majors. (XXII seems to have a lot of RJR alums.)
Second is the possibility that XXII can develop, produce, and market its own brand(s) of cigarettes in the US or other markets. This alone could make XXII a several billion dollar company.
Third, there is the possibility that the FDA may require, or allow advertising of, a reduced nicotine content in some or all US cigarettes after it completes its research with XXII low nicotine cigarettes. Only XXII has the capacity to provide low nicotine tobacco suitable (tasting) for such a product. Licenses for the cigarettes produced in the US by some or all of the major producers would be a huge revenue boost. Again, a billion dollar company or a buyout.
Key near term events for XXII are approval to begin making cigarettes, the actual initiating of production, and the up-listing of the stock so that it becomes possible for institutions to buy. I will not count these as done until they are, in fact, done. Nothing here is a foregone conclusion, but the odds do seem to be on our side.
One big danger I see flows from the valuation of XXII. The current valuation is tiny, which allows room for huge percentage appreciation, but also restricts XXII's financial resources. In the event of a challenge to XXII's patents and prolonged litigation, it seems to me that XXII might lack the resources for a long fight. Remember, patents are not self executing. They have to be asserted and defended in court, often at great expense.
All in all, I see XXII as a GREAT OPPORTUNITY. I think the odds are in our favor. I am overweight XXII. But there is no such thing as a riskless investment. Our rosy scenarios can be destroyed by human error or by governmental action, and XXII is not big enough to absorb a number of hits. I applaud your enthusiasm, but do not psych yourself into believing that this opportunity cannot fail. It can. It might. And I will not bet the farm!
Recent XXII News
- Form SC 13G/A - Statement of Beneficial Ownership by Certain Investors: [Amend] • Edgar (US Regulatory) • 09/05/2024 08:17:04 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/28/2024 01:00:17 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/21/2024 01:00:13 PM
- Form 253G3 - • Edgar (US Regulatory) • 08/16/2024 09:27:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/16/2024 09:25:39 PM
- Form QUALIF - Notice of Qualification [Regulation A] • Edgar (US Regulatory) • 08/14/2024 04:15:01 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/13/2024 10:05:35 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/13/2024 10:00:20 AM
- Form 1-A/A - Offering Statement [Regulation A]: [Amend] • Edgar (US Regulatory) • 08/08/2024 09:00:39 PM
- Form 1-A - Offering Statement [Regulation A] • Edgar (US Regulatory) • 08/02/2024 09:07:03 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/30/2024 08:46:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/22/2024 08:30:17 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 07/10/2024 09:01:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/04/2024 09:00:16 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/30/2024 08:05:23 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 10:08:59 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/10/2024 09:22:05 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/09/2024 08:30:44 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 09:30:52 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/14/2024 09:10:59 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/13/2024 09:30:25 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/25/2024 01:30:13 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 01/24/2024 09:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/24/2024 09:30:18 PM
Simple Stock Loans Announces Unique Solutions For Investors Looking for Alternative Liquidity Amidst Recent Small Cap Rally Sep 6, 2024 9:30 AM
Reliant Coffee Debuts at #271 on the Inc. 5000 List of Fastest Growing Companies - Coffee Service Industry Disruptor Brews Up Exponential Growth Sep 5, 2024 11:51 AM
VAYK Confirms Receiving Revenue from First Airbnb Property with 1.4 Million Annual Revenue Goal • VAYK • Sep 4, 2024 9:34 AM
Mawson Finland Limited Expands Known Mineralized Zones at Rajapalot: New Lens Intercepts 21.75 m at 5.25 g/t Gold & 515 ppm Cobalt • MFL • Sep 4, 2024 9:02 AM
Integrated Ventures Acquires 51% Stake In GetTrim.Com (TM), Telemedicine Platform With Focus On Expansion Into Booming GLP-1 Powered Weight Loss Market • INTV • Sep 4, 2024 8:45 AM
Avant Technologies Announces Strategic Review Process Intended to Maximize Shareholder Value • AVAI • Sep 4, 2024 8:00 AM