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22Nd Century Group, Inc. (XXII) SEC Filing 10-Q Quarterly Report for the period ending Friday, September 30, 2022

22Nd Century Group, Inc.

CIK: 1347858 Ticker: XXII

Exhibit 99.1

22nd Century Group (Nasdaq: XXII) Reports Business Highlights and Financial Results for the Third Quarter 2022

Accelerating VLN® Sales in Colorado and Illinois, Launching in Four Corners States to Capture Market Share and Volume
GVB Biopharma Acquisition Growing Revenue on Increased Volumes
Third Quarter Net Sales $19.4 Million, Up 148% from the Third Quarter 2021
Strong Balance Sheet to Support Strategic Initiatives Including Accelerated VLN® Expansion

BUFFALO, N.Y., November 8, 2022 (Globe Newswire)

— 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company dedicated to improving health with reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technologies, today reported results for the third quarter ended September 30, 2022, and provided an update on recent business highlights. The Company will host a live audio webcast today at 10:00 a.m. E.T.

James A. Mish, Chief Executive Officer of 22nd Century Group, stated: “The past few months have demonstrated tremendous commercial progress in 22nd Century’s reduced nicotine tobacco and hemp/cannabis businesses. Our VLN® product launch has expanded from the exceptional pilot in Chicago to now five states. We plan to expand that base to as many as 18 states over the next twelve months. Doing so would give us access to more than half the $80 billion U.S. tobacco market and position us in most, if not all, of the states that have enacted MRTP excise tax provisions favorable to our unique product authorization. Even just a 1% share, which we view as eminently achievable based on our pilot results, would be transformative to our revenue line. The FDA is also continuing to advance its interests in transformative menthol and reduced nicotine policies, and 22nd Century is positioned at the forefront of this opportunity with the only MRTP authorized 95% reduced nicotine combustible cigarette and years of clinical research documenting the benefits of our products.

“We also reported our first full quarter of hemp/cannabis revenue benefitting from the acquisition of GVB Biopharma this spring. We are now the largest merchant market supplier of CBD in North America and positioned to grow that stake even further. We are moving quickly to complete the startup of our new Prineville crude extraction plant and secure additional certifications for our facilities that will further differentiate our products and make us the premier supplier of hemp-derived extracts and ingredients to consumer and wellness products. Success in these endeavors will enable us to increase our gross margin on this portion of our business and compete from a position of strength in a much larger active ingredient market once FDA announces its highly anticipated new product standards for the industry.

“With a strengthened balance sheet and a clear path to increased revenue and gross margins, we are excited about the path forward as we work to rapidly drive market share and create operating scale across our business units,” concluded Mish.

Recent Key Financial and Business Highlights

Tobacco Business

22nd Century Group has moved aggressively into its commercial launch program for VLN®, leveraging its exceptional pilot results to develop an efficient, reproducible VLN® Sales Launch Blueprint that focuses resources to achieve the greatest returns.
oThe launch blueprint is designed to be repeatable as the Company expands VLN® availability to new markets.
oThe Company expects to gain significant market share in a new market based on consumer adoption.
oConsumers have described VLN® as “game-changing” and “lifesaving”.
22nd Century has refined its VLN® rollout strategy to focus on going deeper into select geographies and markets with high cigarette volume and large adult smoker populations.
oThe Company estimates that every 1% share of the U.S. retail market equates to approximately $800 million in retail sales, which is $500 million in revenue for a premium cigarette manufacturer.
o22nd Century will also prioritize states with Modified Risk Tobacco Product (MRTP) state excise tax savings, which can be used toward adult consumer incentives, expand distribution, and additional programming to raise awareness, education, and trial among adult smokers of its unique products.
22nd Century announced that it is expanding its retail sales presence in Illinois following exceptional results in its Chicago pilot.
The Company subsequently launched VLN® in Colorado through its expanded network of retailers and distribution partners, including Circle K, Eagle Rock Distributing Company, and Creager Mercantile.
oThe Colorado VLN® distribution plan includes thousands of retail sites and numerous new retailers supported by 22nd Century’s distribution partnerships.
oThe Company is initially acting on approximately 3,000 locations across the state where VLN® will be available.
The Company also announced that it will launch VLN® in three additional states – Arizona, New Mexico, and Utah – covering the Four Corners region.
oExpanding into the Four Corners gives VLN® access to concentrated centers of adult smokers allowing the Company to market VLN® in a streamlined and efficient manner where resources can be pooled and focused.
oNew Mexico and Utah have an MRTP tax benefit that 22nd Century Group can leverage similar to its activities in Colorado.

The following information was filed by 22Nd Century Group, Inc. (XXII) on Tuesday, November 8, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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22Nd Century Group, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

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Inside 22Nd Century Group, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
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Condensed Consolidated Statements Of Operations And Comprehensive Loss
Business Acquisitions
Business Acquisitions (Details)
Business Acquisitions (Tables)
Business Acquisitions - Discount Rate And Remaining Lease Terms (Details)
Business Acquisitions - Pro Forma Information (Details)
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Business Acquisitions - Purchase Price Allocation (Details)
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Earnings Per Share
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Equity- Based Compensation
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Equity- Based Compensation - Compensation Expense And Unrecognized Compensation (Details)
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Fair Value Measurements And Short-Term Investments (Details)
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Fair Value Measurements And Short-Term Investments - Changes In Fair Value, Level 3 (Details)
Fair Value Measurements And Short-Term Investments - Maturity Of Available-For-Sale Securities By Contractual Maturity (Details)
Fair Value Measurements And Short-Term Investments - Recurring (Details)
Goodwill And Other Intangible Assets, Net
Goodwill And Other Intangible Assets, Net (Tables)
Goodwill And Other Intangible Assets, Net - Aggregate Intangible Asset Amortization Expense (Details)
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Goodwill And Other Intangible Assets, Net - Goodwill (Details)
Goodwill And Other Intangible Assets, Net - Intangible Assets (Details)
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Investments &Amp; Other Assets
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Investments &Amp; Other Assets - Investment In Change Agronomy (Details)
Investments &Amp; Other Assets - Investment In Panacea Life Sciences, Inc (Details)
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Nature Of Business And Summary Of Significant Accounting Policies
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Material Contracts, Statements, Certifications & more

22Nd Century Group, Inc. provided additional information to their SEC Filing as exhibits

Ticker: XXII
CIK: 1347858
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-22-016728
Submitted to the SEC: Tue Nov 08 2022 7:00:49 AM EST
Accepted by the SEC: Tue Nov 08 2022
Period: Friday, September 30, 2022
Industry: Cigarettes

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