XXII - NASDAQ Hemp And Tobacco Company Slashes Debt Boosts Savings | Benzinga
22nd Century Group, Inc. (NASDAQ: XXII) has reduced the outstanding principle of its senior secured credit facility from roughly $22.1 million to approximately $14 million as part of an amendment and waiver process with its lenders.
What Happened
The reduction reflects a waiver and repayment of the $7.5 million minimum cash balance required under terms of the original debenture agreements, which was held in an escrow account, the Buffalo-based company said on Wednesday.
22nd Century also assigned an existing promissory note related to the company's previous holdings in Panacea Life Science Holdings as an additional consideration in the debt reduction transaction.
In a non-monetary exchange, the assigned value of the promissory note was allocated as $600,000 to further principal reduction and $2 million in a decrease in the put price associated with the lenders' outstanding warrants, which ...