XXII - 22nd Century Group up 12% after hours on debt refinancing
- 22nd Century Group ( NASDAQ: XXII ) has surged 12% in after-hours trading after it secured a new $21 million senior secured debt financing.
- Terms of the three-year financing are as follows: issued at 5% original issuance discount; bear cash interest at a rate of 7% per annum; and begin principal amortization in the second year at a rate of 2% of the original balance per month.
- The company has the option to redeem the facility early beginning in the second year.
- 22nd Century ( XXII ) said the financing will help with working capital related to its VLN and GVB business lines . VLN is the company's line of low-nicotine combustible cigarettes, while GVB provides hemp-derived active ingredients.
- Seeking Alpha's Quant Rating views 22nd Century ( XXII ) as a strong sell.
For further details see:
22nd Century Group up 12% after hours on debt refinancing