22nd Century Revenue Growth from Continued Expansion of CMO Volume with New Filtered Cigar Agreements
April 09 2025 - 8:25AM
22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company
that is leading the fight against nicotine by offering smokers a
choice about their nicotine consumption, today announced execution
of two new agreements from former customers to supply their
filtered cigar products.
As part of our expanding customer partnerships,
22nd Century Group is increasing production of filtered cigars.
Initial shipments are expected in the second quarter of 2025, with
volumes anticipated to be 500,000 cartons or more on an annual
basis.
“Over the past six months, we’ve been working to
lock in new opportunities and expand our core CMO business with our
legacy filtered cigar customers,” said Larry Firestone, CEO of 22nd
Century Group. “Today, we’re excited to share that we’ve secured
two new customer agreements, each priced appropriately to provide
gross margin and consistent volume.
These agreements build on the momentum that
began in Q3 2024, when we signed an agreement with a new filtered
cigar customer. This filtered cigar volume reinforces the strength
of our CMO platform and supports our broader growth strategy. More
importantly, it creates a potential path to expand the footprint of
VLN® through trusted partner brands and established retail
channels.”
About 22nd Century Group,
Inc.
22nd Century Group is the pioneering nicotine
harm reduction company in the tobacco industry enabling smokers to
take control of their nicotine consumption.
We created our flagship product, the VLN®
cigarette, to give traditional cigarette smokers an authentic and
familiar alternative that helps them take control of their nicotine
consumption. VLN® cigarettes have 95% less nicotine than the
traditional cigarette and have been proven to greatly reduce
nicotine consumption. Instead of offering new ways of delivering
nicotine to addicted smokers, we offer smokers the option to take
control of their nicotine consumption and make informed and more
productive choices, including the choice to avoid addictive levels
of nicotine altogether.
Our wholly owned subsidiaries include a leading
cigarette manufacturer that produces all VLN® products and provides
turnkey contract manufacturing for other tobacco brands both
domestically and internationally. The 60,000 square foot facility
in Mocksville, North Carolina has the capacity to produce more than
45 million cartons of combustible tobacco products annually with
additional space for expansion.
Our proprietary reduced nicotine tobacco blends
are made possible by comprehensive and patented technologies that
regulate nicotine biosynthesis activities in the tobacco plant,
resulting in full flavor and high yield with 95% less nicotine. Our
extensive patent portfolio has been developed to ensure we have the
only low nicotine combustible cigarette in the United States and
critical international markets.
VLN® is a registered trademark of 22nd Century
Limited LLC.
Learn more at xxiicentury.com, on X
(formerly Twitter), on LinkedIn, and on YouTube.
Learn more about
VLN® at tryvln.com.
Cautionary Note Regarding
Forward-Looking Statements
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements, including but not limited
to our full year business outlook. Forward-looking statements
typically contain terms such as “anticipate,” “believe,”
“consider,” “continue,” “could,” “estimate,” “expect,” “explore,”
“foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,”
“potential,” “predict,” “preliminary,” “probable,” “project,”
“promising,” “seek,” “should,” “will,” “would,” and similar
expressions. Forward-looking statements include, but are not
limited to, statements regarding (i) our cost reduction
initiatives, (ii) our expectations regarding regulatory
enforcement, including our ability to receive an exemption from new
regulations, (iii) our financial and operating performance and (iv)
our expectations for our business interruption insurance claim.
Actual results might differ materially from those explicit or
implicit in forward-looking statements. Important factors that
could cause actual results to differ materially are set forth in
“Risk Factors” in the Company’s Annual Report on Form 10-K filed on
March 20, 2025. All information provided in this release is as of
the date hereof, and the Company assumes no obligation to and does
not intend to update these forward-looking statements, except as
required by law.
Investor Relations & Media ContactMatt
KrepsInvestor Relations22nd Century
Groupmkreps@xxiicentury.com214-597-8200
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