January 31, 2023


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22nd Century Team Delivers Organization Update from CEO Detailing Company Development In excess of Previous Yr and Potential Initiatives

BUFFALO, N.Y., June 25, 2021 (World NEWSWIRE) — 22nd Century Group, Inc. (NYSE American: XXII), a major plant-dependent biotechnology organization focused on tobacco harm reduction, diminished nicotine tobacco, and hemp/hashish investigate, right now launched an update letter to its shareholders from CEO James A. Mish.

Expensive Fellow Shareholders,

It has now been just over one particular 12 months because I was appointed CEO of 22nd Century Group, and I would like to thank you for your enthusiasm and assistance of our Company. I joined the Corporation at a pivotal time in its expansion and improvement as we seek to disrupt equally the tobacco and hemp/cannabis industries by lessening the harm induced by using tobacco and enhancing the cannabinoid profiles and balance of hemp/cannabis vegetation.

We have produced remarkable development above the previous 12 months and believe that even more interesting developments are on the horizon.

It is my privilege to notify you that our significant-price business prospective buyers are in reach. Our commercially centered mental assets system provides us with field-major technology and a broad R&D moat. Our economical placement and working performance are more powerful than at any time. Shares of 22nd Century have soared in excess of 470% in the earlier 12 months. In short, we have properly state-of-the-art our strategic initiatives and bolstered a powerful money basis and prolonged, advancement runway, producing this an even extra interesting time to be associated with 22nd Century.

On the political entrance, new coverage and regulatory developments are making escalating momentum in our favor as we progress toward our subsequent operational milestones. We have witnessed renewed interest in and support for a menthol ban on tobacco merchandise, a decreased nicotine mandate requiring that all cigarettes be produced “minimally or non-addictive” based on their nicotine articles and, with 36 states now legalizing cannabis in some type, important progress on likely reform to hemp/hashish regulation. There is also developing offshore momentum that has opened around-phrase prospects. This grand slam scenario proceeds to power ahead.

In our tobacco franchise, I all over again want to reiterate that we are extremely confident that our Modified Danger Tobacco Product (MRTP) application for our VLN® brand name of reduced nicotine written content (RNC) cigarettes is in the closing levels of critique with the U.S. Foodstuff and Drug Administration. 22nd Century provides the Initial and ONLY minimized nicotine material flamable cigarette solution licensed for sale by the Food and drug administration, and our pending MRTP authorization will let us the headline advertising assert that our business-disrupting cigarettes include “95% Less Nicotine.” Securing this promoting authorization and launching VLN® remains my quantity one precedence as CEO. It is our residence run circumstance which I consider will exponentially improve the current market capitalization of our Corporation.

We are absolutely organized for the industrial start of VLN® King and VLN® Menthol King cigarettes inside 90 days of getting authorization from the Fda. We have expanded our VLN® tobacco increasing software for the current crop 12 months to support predicted demand from customers, and last tumble we gained a new patent on our breakthrough technology that delivers precise genetic control in excess of nicotine stages in nearly any range of the tobacco plant. The new technological innovation delivers 22nd Century with a rapid pathway to introduce decreased nicotine attributes into nearly all types of tobacco. We have a marvelous chance in diminished nicotine products throughout the overall tobacco landscape both in the U.S. and offshore, and these chances are now in movement.

Turning to hemp/cannabis, following conducting a mindful strategic analysis of this franchise, we refocused our tactic in 2020 to develop out and prioritize the a lot more beautiful upstream segments of the cannabinoid worth chain. We believe that we are now uniquely positioned in the cannabis sector, steeped in plant science and genetic IP important to quickly establish high-top quality, large-scale and stable business plant strains. 22nd Century’s plant science emphasis will serve as the vital url to make the specific characteristics essential to optimize cannabis solutions at scale as the business evolves towards mass production. Our remarkably differentiated upstream abilities are based on patented breakthrough hemp/hashish technological know-how that makes it possible for us to genetically engineer hemp/cannabis vegetation to modulate their cannabinoid and terpene profiles in a portion of the time of our opponents. We can tailor the plant’s therapeutic attributes, and, in flip, increase our strategic partner’s economics and the consumer’s hemp/hashish knowledge.

We have expanded and highly developed our successful plant research partnerships with KeyGene and CannaMetrix, and established strategic partnerships with two top and shortly to be introduced, alkaloid-centered plant breeders in the northern and southern hemispheres, providing for calendar year-round developing abilities. 22nd Century Team has now secured all crucial partnerships wanted to increase and help each individual of the 5 factors in the upstream phase of the cannabinoid price chain: plant profiling (CannaMetrix), plant biotechnology (KeyGene), business-scale plant breeding plant cultivation (Needle Rock Farms and breeder network), and component extraction/purification (Panacea). In executing so, we have developed a exceptional capacity to speed up the shipping and delivery of valuable, commercial-scale plant lines and intellectual property in just two many years. Eventually, our new Canadian subsidiary, 22nd Century Canada, was launched previous month to provide as a base for all of our expanded things to do in tobacco, hemp/hashish and our forthcoming third franchise in that crucial industry.

The Company is actively pursuing a number of hemp/cannabis income streams in 2021. These contain monetization of a part of the Company’s precious hemp/hashish intellectual residence, together with the recently introduced strategic partnership with Aurora, and offtake commitments for our high CBD and CBG plant lines currently growing in Needle Rock Farms in Colorado for commercialization in the types of flower, distillate, or isolate. Then additional new plant lines coming by the advancement pipeline will grow increasing and earnings generation alternatives next yr.

Our 3rd plant-based mostly franchise will leverage our broad plant science expertise to go after more significant-price industrial alternatives. The plant species we have recognized for this franchise has a very similar genome to the hemp/hashish plant, but this market is not as remarkably regulated and legislated as our to start with two franchises, enabling a more rapidly route to commercialization. This a lot more than $500 billion sector provides our whole addressable market place prospect throughout our 3 franchises to a large $1.3 trillion.

The proceeds of our new straight widespread equity financing will accelerate quite a few of the ongoing strategic objectives I have already detailed, plus accelerate more enhancements across every of our three plant franchises. These consist of offshore VLN® industry options, acceleration in our cannabis efforts these types of as the launch of our Canadian subsidiary and study function all-around supplemental leisure and health-related programs, and planning for the launch of our 3rd franchise to additional leverage our plant science capabilities across beneficial and robust conclude marketplaces.

I also want to place out that your administration group and board are invested in this opportunity along with you, our stockholders, like both equally equity holdings and prolonged time period incentive buildings. As a group, we possess around 5 million shares, which include equally beneficially owned and unvested incentive shares, and believe that strongly in the long run of our Firm. Due to the significant improve in our stock value in excess of the prior calendar year, many executives and directors have accrued major tax liabilities under these fairness payment programs. Gross sales of Business inventory to go over taxes are commonplace between publicly traded companies these kinds of as ours, and should not be viewed as a absence of sturdy conviction in our business and in general approach.

More specially, you might have witnessed, or will see income by insiders, these as myself that are related to covering these tax liabilities. This includes the restricted stock models granted as effectiveness-based payment for my first 12 months of support, which have now vested and will be taxed as personalized cash flow. While a tiny portion of my shares had been transacted to go over these taxes under the terms of that grant, this action has no bearing on my self-assurance and conviction in the existing and long term benefit of our Corporation. I am psyched to be a stockholder in our organization as we carry on to attempt for development and benefit development.

I’m incredibly very pleased of all that we have achieved collectively in the past 12 months and deeply appreciative of the dedication and diligence of our superb group. 22nd Century has attained a legitimate inflection stage in our small business — and the greatest is yet to appear. I am keen to share with you more achievements in the coming months as we execute on our progress ideas.

Thank you for taking part in a very vital purpose in advancing 22nd Century’s significant work in tobacco harm reduction and modern plant science.

James A. Mish
Main Govt Officer, 22nd Century Group

About 22nd Century Group, Inc.
22nd Century Group, Inc. (NYSE American: XXII) is a foremost plant biotechnology enterprise focused on technologies that alter the amount of nicotine in tobacco plants and the stage of cannabinoids in hemp/cannabis crops by way of genetic engineering, gene-modifying, and modern plant breeding. 22nd Century’s principal mission in tobacco is to lower the harm triggered by using tobacco through the Company’s reduced nicotine material tobacco cigarettes – containing 95% significantly less nicotine than typical cigarettes. The Company’s major mission in hemp/hashish is to acquire and commercialize proprietary hemp/cannabis vegetation with beneficial cannabinoid profiles and fascinating agronomic attributes.

Master additional at xxiicentury.com, on Twitter @_xxiicentury, and on LinkedIn.

Cautionary Take note Pertaining to Forward-Looking Statements
Except for historical info, all of the statements, anticipations, and assumptions contained in this push launch are ahead-searching statements. Forward-searching statements commonly comprise terms this kind of as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and identical expressions. Actual benefits could vary materially from individuals specific or implicit in ahead-on the lookout statements. Essential components that could induce genuine results to differ materially are established forth in “Risk Factors” in the Company’s Yearly Report on Variety 10-K submitted on March 11, 2021. All details furnished in this launch is as of the day hereof, and the Corporation assumes no obligation to and does not intend to update these forward-seeking statements, except as needed by law.

This push release shall not represent an give to market or the solicitation of any offer to acquire the securities reviewed herein, nor shall there be any offer you, solicitation, or sale of the securities in any state in which such offer you, solicitation or sale would be unlawful prior to registration or qualification underneath the securities guidelines of any these types of point out.

Trader Relations & Media Call:
Mei Kuo
Director, Communications & Investor Relations
22nd Century Team, Inc.
(716) 300-1221
[email protected]