XXII - 22nd Century CEO falls on common shares offering CEO steps down

2023-07-24 11:40:46 ET

• 22nd Century Group Inc ( NASDAQ: XXII ), announced on Monday its Chief Executive Officer James Mish has stepped down and John Miller, who leads the tobacco business unit, has been appointed as interim CEO.
• XXII is -39.5% to $2.93.
• Mish, who has served as CEO since June 2020, will continue to serve as a member of the Board of Directors.
• 22nd Century also appointed Andrew Arno, who is currently the Chairman of the Board of Oncocyte Corporation, to its Board of Directors as an independent director.
• The company announced a direct offering of common shares and warrants for total gross proceeds of $11.7M which will be used to accelerate the consumer use data for VLN among adult smokers, accretive structural changes to streamline operations and for general corporate purposes.
• The transaction closed on July 21.
• Under direct offering, 4.37M common shares are issued at $2.67 and warrants to purchase up to 8.75M common shares at an exercise price of $2.42 per share and are immediately exercisable.
• The Company has implemented a cost savings initiative to simplify operations resulting in an estimated $15M in annualized cost reductions.
• Source: Press Release

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