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BUFFALO, NY, July 01, 2021 (GLOBE NEWSWIRE) – 22nd Century Group, Inc. (NYSE American: XXII), a leading plant-based biotechnology company focused on tobacco harm reduction, nicotine tobacco reduction and hemp / cannabis research, today announced that it has signed a definitive agreement to restructure its strategic investment in Panacea Life Sciences, Inc., in line with the ongoing development of 22nd Century’s network of strategic partnerships.
Under the terms of the deal, 22nd Century’s existing $ 7 million note in Panacea will be exchanged for the property of Needle Rock Farms, located in a Colorado hemp / cannabis growing location and valued at $ 2.2 million. of dollars. The Company will also receive a new note of $ 4.3 million and $ 500,000 in equity from Panacea. The new note is backed by a mortgage on the Panacea Life Sciences operating building in Golden, CO, valued at $ 10.7 million. Panacea will maintain certain agricultural assets under its own nameplate from PANA Organic Botanicals in Needle Rock.
Also under the agreement, $ 7.0 million of Panacea Life Sciences Series B preferred shares held by 22nd Century will be converted into 91 million shares of Exactus, Inc. (OTCQB: EXDI), in as part of a business combination transaction via an exchange of shares with Panacea under which Panacea will become listed on the stock exchange. The transaction should be immediately accretive for 22nd Century.
“This exchange is an exciting leap forward for the 22nd century as we advance our upstream value chain strategy to bring highly disruptive lines of hemp and cannabis plants to market. It is also very attractive to 22nd Century on a financial basis, creating immediate value, future asset-backed value and potential future liquidity from an existing investment, â€said James A. Mish, CEO of 22nd Century. Group. “Needle Rock Farms is a world-class farm operation in a prime growing location where we already have plants in the ground towards our goal of revenue recognition from our cannabis franchise in the second half of 2021. We will also maintain access. to Panacea extraction, purification and testing equipment located in Golden, CO for the benefit of our customers.
“The rapidly growing demand means that mass cultivation is quickly becoming the critical challenge of the cannabis industry. Most of the existing plant lines do not exhibit the stable genetics, predictable yield or specific cannabinoid composition necessary to fully unleash the value of the cannabis industry, â€continued Mish. “22nd Century can provide the stable and predictable factory solutions needed to reach true commercial scale in as little as two years versus 7-10 years with traditional processes. “
About 22nd Century Group, Inc.
22nd Century Group, Inc. (NYSE American: XXII) is a leading plant biotechnology company focused on technologies that alter the level of nicotine in tobacco plants and the level of cannabinoids in hemp / cannabis plants through the genetic engineering, gene editing and plant breeding. 22nd Century’s primary tobacco mission is to reduce the harm caused by smoking with the company’s nicotine-reduced tobacco cigarettes – containing 95% less nicotine than conventional cigarettes. The main mission of the company in the field of hemp / cannabis is to develop and commercialize exclusive hemp / cannabis plants with valuable cannabinoid profiles and desirable agronomic characteristics.
Learn more at xxiicentury.com, on Twitter @_xxiicentury and on LinkedIn.
Caution Regarding Forward-Looking Statements
Except for historical information, all statements, expectations and assumptions contained in this press release are forward-looking statements. Forward-looking statements generally contain words such as “anticipateâ€, “believeâ€, “considerâ€, “continueâ€, “couldâ€, “estimateâ€, “expectâ€, “exploreâ€, “anticipateâ€, “objective†, “” Direction “,” intend “,” likely “,” may “,” plan “,” potential “,” predict “,” preliminary “,” probable “,” project “,” promising “,” search for “,” should, “” will, “” would like, “and similar expressions. Actual results may differ materially from those expressed or implied in forward-looking statements. Important factors that could cause actual results to differ materially are set out in the “Risk Factors†section of the Company’s Annual Report on Form 10-K filed on March 11, 2021. All information provided in this press release is to the date hereof, and the Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities referred to herein, and there will be no offer, solicitation or sale of the securities in any State in which such offering, soliciting or selling would be illegal prior to registration or qualification under the securities laws of such state.
Investor Relations and Media Contact:
Mei Kuo
Director, Communications and Investor Relations
22nd Century Group, Inc.
(716) 300-1221
[email protected]
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