XXII - 22nd Century acquires UK cannabis distributor RX Pharmatech for $650K

• 22nd Century ( NASDAQ: XXII ) said it had acquired a privately-held UK distributor of cannabinoids RX Pharmatech for an up-front payment of $650K in cash and stock and a three-year equity earn-out based on revenue milestones.
• RXP’s products include CBD isolate and finished products like gummies, oils, drops, candies, tinctures, sprays, capsules, and others.
• "RXP has exclusively utilized GVB’s technical data and worked closely with the FSA on developing their highly effective application and compliance programs that secured 1,276 novel food applications, the second most CBD products to pass through the first round of approval," the company said.
• The company expects immediate accretive addition to the hemp/cannabis business with positive EBITDA
• The company hopes regulatory action will enable multinational, well-recognized brands to enter the U.S., U.K., and EU nutraceutical, food, and beverage market, and increase CBD demand and novel food licenses.
• ( XXII ) is trading 1.3% higher .

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