22nd Century Group raises $4.7 million through at-the-market stock sale
22nd Century Group raises $4.7 million through at-the-market stock sale
22nd Century Group, Inc. (NASDAQ:XXII) reported Friday that it has raised approximately $4.7 million in gross proceeds through the sale of 15,785,757 shares of its common stock during October as part of its at-the-market offering. The company made the announcement in a press release statement filed with the Securities and Exchange Commission.The capital raise comes as the stock has declined nearly 100% over the past year, with shares currently trading at $0.20 against an InvestingPro Fair Value of $0.31, suggesting the stock may be undervalued. An InvestingPro Tip highlights that the company is quickly burning through cash, making this funding critical for operations. The company’s market cap stands at just $0.14 million. Investors can access 19 additional ProTips and comprehensive financial metrics on InvestingPro.
The offering was conducted under a previously filed prospectus supplement to the company’s Registration Statement on Form S-3 (Registration No. 333-294792), which permits the sale of up to $18.8 million in common stock. The sales were made pursuant to the company’s sales agreement with Needham & Company, LLC.
As of Friday, 22nd Century Group had 19,202,198 shares of common stock outstanding. The company’s common stock is listed on the NASDAQ Capital Market under the ticker symbol XXII.
The company stated that this current report does not constitute an offer to sell or the solicitation of an offer to buy shares in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under applicable securities laws.
This information is based on a press release statement included in the company’s SEC filing.
In other recent news, 22nd Century Group reported its second-quarter financial results, revealing a significant shortfall in both earnings and revenue. The company’s revenue decreased to $2.86 million, missing the analysts’ forecast of $7.48 million. Additionally, 22nd Century Group’s earnings per share came in at -$104.00, which was substantially lower than the -$6.00 anticipated by analysts. This financial performance reflects the company’s ongoing shift from low-margin contract manufacturing to branded nicotine-reduction products. There were no notable changes in the company’s stock during premarket trading. These recent developments highlight the challenges 22nd Century Group faces as it attempts to reshape its business strategy.