22nd Century Group Establishes Trade Partners Program to Promote the Sale of RED SUN Cigarettes
January 12 2015 - 7:51AM
Business Wire
22nd Century Group, Inc. (NYSE MKT: XXII) today announced that
the Company has established its “Trade Partners Program” to provide
retailers and distributors the opportunity to receive shares of
22nd Century Group common stock as a rebate for purchases of RED
SUN brand cigarettes. The Company filed with the U.S. Securities
and Exchange Commission on January 9, 2015 a prospectus supplement
relating to the Trade Partners Program, in which up to $3.0 million
of the Company's pre-existing $45 million Form S-3 shelf
registration statement (File No. 333-195386) may be used for common
stock issuances under the program (not to exceed 300,000
shares).
The Company established its Trade Partners Program as a
strategic incentive plan to give eligible cigarette distributors
and retailers the opportunity to earn publicly tradable shares of
the Company's common stock in consideration for purchases of the
Company's RED SUN brand of cigarettes. Participating distributors
will earn $1.00 worth of 22nd Century common stock as a rebate for
each carton of RED SUN purchased in 2015 and participating
retailers will earn $3.00 worth of 22nd Century common stock as a
rebate for each carton of RED SUN purchased in 2015.
Various incentive and rebate programs are already prevalent in
the cigarette industry; however, for awarding common stock that is
freely tradable on the NYSE MKT exchange, the Trade Partners
Program is truly unique. The Company believes that the novel
program will be a compelling vehicle to incent cigarette
distributors and retailers to purchase and promote RED SUN
cigarettes.
Positioned to compete with leading brands like Marlboro® and
Camel,® RED SUN is a highly innovative cigarette designed to appeal
to upscale, educated consumers while also winning the loyalty of
specialty retailers and distributors who were instrumental in
building Santa Fe Natural Tobacco Company’s Natural American
Spirit® brand.
22nd Century’s President and Chief Operating Officer, Henry
Sicignano III, explained, “While spearheading sales and marketing
efforts at Santa Fe Natural Tobacco Company, I had opportunities to
talk with and learn from hundreds of tobacconists who championed
American Spirit. Though they appreciated the sales and profits
afforded by American Spirit, these small business owners expressed
to me widespread disappointment that they never had the opportunity
to own equity in the brand or in Santa Fe Natural Tobacco
Company.”
“22nd Century is changing all that,” Mr. Sicignano continued.
“Through our Trade Partners Program we are offering retailers and
distributors an extraordinary opportunity to become 22nd Century
Group shareholders… and a strong incentive to grow RED SUN sales in
2015.”
Many retailers who have committed to stocking 22nd Century
products have informed the Company that they have already purchased
the Company’s common stock on the open market. 22nd Century’s Chief
Financial Officer, John Brodfuehrer explained, “We believe all of
the retailers and distributors who are aware of the next phase in
our Company’s development – especially pertaining to our modified
risk cigarettes in development – are impressed that 22nd Century
has a mission of reducing the harm caused by smoking. Furthermore,
tobacconists understand that there is a huge market demand for a
reduced risk combustible cigarette. We intend to meet that
demand.”
For additional information about 22nd Century Group, please
visit: www.xxiicentury.com
Additional Information about the Trade Partners
Program
The Company has filed a registration statement (including a
prospectus and prospectus supplement) on Form S-3 (File No.
333-195386) with the Securities and Exchange Commission (“SEC”) for
the offering to which this communication relates. For more
information on the Trade Partners Program, you should read the
prospectus in that registration statement, the prospectus
supplement filed on January 9, 2015 forming a part thereof, and
other documents that the Company has filed with the SEC for more
complete information about the Company and this offering. You may
obtain these documents for free by visiting EDGAR on the SEC web
site at www.sec.gov. Alternatively, the Company will arrange to
send you copies of the prospectus and most recent prospectus
supplement if you request such documents by calling us at (716)
270-1523.
This is not an offer to buy or the solicitation of an offer to
sell any security of the Company nor will there be any offer, sale
or solicitation of any security in any jurisdiction in which such
offer, sale or solicitation would be unlawful.
Notwithstanding anything to the contrary contained herein, the
above summary of the Trade Partners Program is qualified in its
entirety by the more detailed and most current official rules of
the Trade Partners Program contained in the most recently filed
registration statement (including all prospectuses and prospectus
supplements) relating thereto.
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company whose proprietary
technology allows for the levels of nicotine and other nicotinic
alkaloids (e.g., nornicotine, anatabine and anabasine) in the
tobacco plant to be decreased or increased through genetic
engineering and plant breeding. The Company’s technology also
allows the levels of cannabinoids to be decreased or increased in
the cannabis plant. 22nd Century owns or is the exclusive licensee
of 128 issued patents plus an additional 53 pending patent
applications; 22nd Century also holds co-exclusive rights to
another 2 patents and 16 patent applications. Goodrich Tobacco
Company, LLC, Hercules Pharmaceuticals, LLC and Botanical Genetics,
LLC are wholly-owned subsidiaries of 22nd Century. Goodrich Tobacco
is focused on commercial tobacco products and potentially less
harmful cigarettes. Hercules Pharmaceuticals is focused on X-22, a
prescription smoking cessation aid in development. Botanical
Genetics is focused on novel cannabis plant varieties and on
cannabis-based products.
Cautionary Note Regarding Forward-Looking Statements: This press
release contains forward-looking information, including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of 22nd Century Group, Inc.,
its directors or its officers with respect to the contents of this
press release. The words “may,” “would,” “will,” “expect,”
“estimate,” “anticipate,” “believe,” “intend” and similar
expressions and variations thereof are intended to identify
forward-looking statements. We cannot guarantee future results,
levels of activity or performance. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date that they were made. These cautionary statements should
be considered with any written or oral forward-looking statements
that we may issue in the future. Except as required by applicable
law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform
these statements to reflect actual results, later events or
circumstances, or to reflect the occurrence of unanticipated
events. You should carefully review and consider the various
disclosures made by us in our annual report on Form 10-K for the
fiscal year ended December 31, 2013, filed on January 30, 2014,
including the section entitled “Risk Factors,” and our other
reports filed with the U.S. Securities and Exchange Commission
which attempt to advise interested parties of the risks and factors
that may affect our business, financial condition, results of
operation and cash flows. If one or more of these risks or
uncertainties materialize, or if the underlying assumptions prove
incorrect, our actual results may vary materially from those
expected or projected.
Redington, Inc.Tom Redington, 203-222-7399
22nd Century (AMEX:XXII)
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