CANNAINVESTOR Magazine May 2017 - Page 242

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22nd Century Raises 2017 Revenue Projection to $16Million – Another Record Year

22nd Century Group, Inc. (NYSE MKT:XXII), a plant biotechnology company, announced today that the Company’s wholly-owned subsidiary, NASCO Products, recently entered into substantial new manufacturing agreements for the production of filtered cigars and other tobacco products. The products to be manufactured by 22nd Century as a result of these executed new contracts are currently supplied to more than 250 distributors and wholesalers and more than 40,000 retail stores across the United States.

In order to accommodate this sizeable increase in business, 22nd Century has already hired 37 new employees, more than doubling its workforce at the Company’s NASCO factory in Mocksville, North Carolina. When combined with existing business, 22nd Century is raising its 2017 total revenue projection from a previously announced $12,000,000 to more than $16,000,000. In 2018, 22nd Century anticipates total revenues will significantly exceed $20,000,000 and the Company’s factory will be cash flow positive.

Scotts Miracle-Gro (SMG) gapped down to a loss of 5% after the company's Q1 adjusted earnings of $2.78 a share missed Wall Street estimates. Scotts also announced that it agreed to sell its European and Australian consumer operations to Exponent Private Equity in a deal valued at about $250 million. The stock is now dwelling in the lower half of a saucer-type base with a 98.91 buy point.

22nd Century Group, Inc. (XXII) is up more than 40% in pre-market trading after the company said the FDA will allow XXII to conduct a clinical trial studying its BRAND B, low tar-to-nicotine ratio cigarettes. This trial is designed to confirm that as smokers make the adjustment to a higher nicotine cigarette, they take in less smoke because the nicotine is more readily available.

22nd Century has engaged a Contract Research Organization with extensive experience in combustible cigarette exposure studies to conduct the BRAND B trial this summer. 22nd Century Group Vice President of Research & Development Dr. Michael Moynihan said, “Our initial clinical trial investigating the effects of BRAND B’s design-objective – the reduced delivery of smoke components, other than nicotine – is a measurable step forward in the development of our Company’s mission.”