22nd Century Group (XXII) Updates on Results of Annual Meeting; Plans Brand A NDA Submission This Summer
Modified Risk/FDA:
The Company intends to submit an application for its very low nicotine cigarette (Brand A) to the FDA this summer. Gaining Modified Risk approval for the Company’s low tar-to-nicotine ratio cigarette (Brand B) is also a priority. However, since applying for Brand B Modified Risk approval will require a substantially greater investment in time and money, the Company plans to submit a Brand B application in 2016.
X-22:
The Company recently completed visits to Japan and Europe where management met with potential joint venture partners for X-22, the Company’s smoking cessation aid in development.
RED SUN:
In the first three months on the U.S. market, the Company secured distribution for RED SUN premium cigarettes in approximately 200-300 retail stores in more than 40 states. Management expects to announce the signing of additional distributors and regional retail store groups in the coming months.
MAGIC:
The Company recently launched its 0.0 mg MAGIC 0 cigarettes in Europe. The Company is marketing two styles of MAGIC cigarettes: MAGIC 0 with 95% less nicotine than conventional brands and MAGIC 2 which features an 80% reduction in nicotine. MAGIC cigarettes are currently available in approximately 900 state-licensed tobacco stores in Spain. The store count is expected to top 2,500 in Spain by the end of 2015. Further, the Company expects distribution of MAGIC cigarettes to reach several additional European countries in the next several months.
China:
It remains an important priority for the Company to introduce 22nd Century’s proprietary tobacco to China. Despite significant regulatory hurdles, the Company continues to make progress in this effort.
Contract Manufacturing:
NASCO Products LLC, the Company’s cigarette manufacturing subsidiary located in Mocksville, North Carolina, continues to produce Smoker Friendly, Cigar Cartel, and other private label brands in addition to 22nd Century’s proprietary brands.
Increased Investor Relations Outreach:
Given the exciting opportunities and events underway at the Company, management expects to increase its investor relations activities in the coming months. Mr. Sicignano is scheduled to attend several investor conferences, including the upcoming Marcum Conference in New York City in late May and the LD Micro conference in Los Angeles in June, and will conduct non-deal investor road shows in select regions during the balance of 2015. Mr. Sicignano is also looking forward to media opportunities, such as his upcoming interview today on Fox Business’ Stuart Varney show.
Mr. Sicignano noted, “We are very pleased to report to our shareholders the substantial progress underway at 22nd Century Group. It is an exciting time for all of us; the market response to RED SUN and MAGIC has been tremendous. We look forward to developing these exciting new brands.”
FORMAL MATTERS DETERMINED BY SHAREHOLDER VOTE:
Proposal 1 Passed: Both Henry Sicignano III, who is also currently the CEO and President, and Richard M. Sanders were re-elected as Class I Directors with terms expiring in 2018.
Proposal 2 Passed: The Advisory Resolution on Executive Compensation was approved.
Proposal 3 Passed: Freed Maxick CPAs, PC was ratified as the Company’s independent registered certified public accounting firm for 2015.