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Lnp30

06/26/15 7:58 PM

#26280 RE: Charvey #26278

Only answering the "worthwhile" questions.

2) What's the recent 6million dollars for? *Ongoing business activities or something like that

3) Did Henry state in CCall that xxii won't need $$$ until next year? Yes or No .... *Yes and if we land an Asian deal they can use sales to fund operations I believe is what Henry said

4) Was there any other board members involved with the manipulation of this stock/company other than former CEO? *Joe manipulated two company's stock back in 1993. It wasn't xxii.

5) What the heck happen to T.Phizer and China? *This is the only legit question in your question set.

6) How's the establishment of the 'Wholly Foreign-Owned Enterprise' working out? *they submitted it. Well know when they announce and Asian deal.

gilbe

06/26/15 8:11 PM

#26283 RE: Charvey #26278

My thoughts below...

1.If this is such a stellar opportunity with HUGE opportunity - where is the buying...or is that only this boards opinion?
a.Currently the company has a market cap around $70M and has provided revenue guidance for CY15 of $5M or more. You have to understand that from a value perspective the market already has priced reasonable growth into this stock. This is one of the reasons the stock does not significantly increase on expected news. Unexpected news (JVs, BAT, licensing, policy change, etc) will have a big impact on the share price. As the company continues to post earnings the market will get a better idea of the growth trajectory XXII is on, right now it’s a complete unknown. This shouldn’t be surprising as the company is only recently started generating revenue.

2.What's the recent 6million dollars for?
a.The company stated in the last 10q that they had adequate cash reserves to sustain operations for approximately 9 months. They took this opportunity to quickly raise capital. Why they decided to raise the capital now is a question I have as well. My only assumption is that there was/is a time sensitive initiative that required the capital raise sooner rather than later.

3.Did Henry state in CCall that xxii won't need $$$ until next year? Yes or No
a.Since Henry has been doing quarterly conference calls he has not said that. He did however suggest the company would not need additional capital after the BAT licensing deal (Oct 2013). Unfortunately that wasn’t the case.

4.Was there any other board members involved with the manipulation of this stock/company other than former CEO?
a.No, not based on everything I have read.

5.What the heck happen to T.Phizer and China?
a.Terren Peizer still owns 6.3M shares of XXII with a cost basis above the current share price. He has and continues to be a strategic, long term, shareholder.

6.How's the establishment of the 'Wholly Foreign-Owned Enterprise' working out?
a.I would assume the WFOE process is complete by now, but that’s speculation. This would be a good question to ask on the next quarterly conference call.

7.Do the current levels meet your expectations? Is this what investors expected or projected for summer of 2015?
a.There are multiple catalysts that should occur over the next twelve months that will make the value of the company’s technology visible. These include identifying a partner for phase III testing of X-22, submission of FDA modified risk applications, multiple Asian JV opportunities, and further expansion of the company’s commercial products. 22nd Century Group is a very unique company that not only has the ability to offer sustainable value creation for its shareholders but can also offer a sustainable competitive advantage through its extensive patent portfolio. It has made the last great development in the combustible cigarette market and is poised to significantly disrupt one of the biggest industries in the world.

8.Does a company's SP matter? It doesn't seem to matter w/Xxii
a.Yes. Management has stated on every conference call that they are not happy with the current SP and are doing everything they can to execute on their important mission, which will increase SP.

9.Why does the stock tank after POSITIVE news?? This has become a repeating pattern for quite some time. Why?
a.See comments in answer one. Traders of the stock also play a role here.

10.If Q2 raises the share price to $2 ... what keeps it from falling back to a these low levels? Nothing positive or significant thus far has stopped it.
a.Earnings and/or any material news that impacts the future value of cash flows will stabilize the stock price.