Replies to post #14500 on 22nd Century Group Inc (XXII)

[linuspop]

TheDane, see Note 7 in the filing:

NOTE 7. - EQUITY INVESTMENT AND ADVANCE



On April 11, 2014, the Company, through a newly formed wholly-owned subsidiary, Botanical Genetics, LLC, entered into an agreement (the “Agreement”) with a certain plant biotechnology company (the “Investee”). The Agreement calls for the Company to make an initial investment of $250,000 in return for (i) a ten percent (10%) equity interest in the Investee, and (ii) certain rights granted to the Company for four patent families (the “Intellectual Property”). The $250,000 investment was made on April 14, 2014. Upon certain milestones to be achieved by the Investee, which are expected prior to September 30, 2014, the Company will make an additional investment in the Investee in the amount of $450,000 in return for (i) an additional fifteen percent (15%) equity interest in the Investee, and (ii) a worldwide license agreement to the Intellectual Property, including an exclusive license agreement within the U.S. In addition, upon the achievement of the milestones, the Company will grant 150,000 shares of the Company’s common stock to the Investee. On the one year anniversary of the milestone achievement, the Company will grant shares of the Company’s common stock with an aggregate market value of $325,000 at the time of the grant. In January 2014, the Company made a non-interest bearing advance to the Investee in the amount of $92,894 that will be applied to the payment of patent costs relating to the Intellectual Property to be included in the license agreement. The Company does not control nor exert significant influence over the Investee and therefore carries the investment at cost.

[petemantx]

I had expected some news on the further equity investment by BG in the partner, which was to occur by 1 Aug, to be buried in the 10Q but it wasn't.

Pretty sure now that we hear nothing about this matter until end of Sept when the next $450K installment payment would be due based on unnamed partner reaching milestone development. Then 1 yr later we pay $350K in stock to help with the expected patent costs.

Still there are some kernels of good in the 10Q

Approval request sent to MSA members in late July
European market expected to start selling in Fall
China was included in current expansion plans in Asia


Don't know how this 10Q will affect price as how many big firms are reading our 10Q's yet? Hope it picks price up a little. Many retail investorss will only look at revenue numbers and think this is a dead horse.