Business

22nd Century Group partners with Greenbutts on filters By Investing.com


MOCKSVILLE, NC – 22nd Century (NASDAQ:) Group, Inc. (NASDAQ: XXII), a company specializing in tobacco harm reduction, has announced a partnership with Greenbutts, LLC to manufacture a new type of cigarette filter designed to be water soluble and biodegradable. The initiative aims to tackle the environmental issue of cigarette butt litter, the most littered item globally.

Under the multi-year agreement, 22nd Century Group will provide manufacturing space and staff at its NASCO facility in Mocksville, North Carolina, to produce sample filters for Greenbutts. These samples will be used to seek FDA approval, with the goal of eventually beginning full-scale production.

Larry Firestone, Chairman and CEO of 22nd Century Group, highlighted the environmental impact of the 6 trillion plastic-based cigarette butts produced annually, with an estimated 65% ending up as litter. Conventional cigarette butts, made of cellulose acetate, can take decades to degrade, posing significant risks to ecosystems, particularly aquatic environments.

Greenbutts’ technology offers a solution with filters that disperse in water within minutes and degrade in compost within days, in contrast to the 10-15 years required for traditional filters. The company’s filters are made from plant-based materials, are 100% biodegradable, and do not contain plastic or harmful chemicals.

The collaboration could see Greenbutts’ filters used in 22nd Century Group’s VLN® reduced nicotine content cigarettes, the first combustible cigarette to receive an FDA harm reduction authorization, as well as in products produced by other brands through the company’s contract manufacturing operations.

22nd Century Group is known for its agricultural biotechnology focused on reducing nicotine in tobacco plants and cigarettes. It is a participating manufacturer under the Master Settlement Agreement and is vertically integrated, handling the production of its own products and contract manufacturing operations.

Greenbutts, established in 2010, has been developing its natural filter technology with the support of R&D institutions, multinational tobacco companies, and industry experts. The company’s innovation comes at a time when single-use-plastic legislation is becoming increasingly prevalent worldwide.

This partnership is based on a press release statement and aligns with 22nd Century Group’s commitment to improving health and wellness through plant science and tobacco harm reduction.

In other recent news, 22nd Century Group, a plant biotechnology company, has been granted a 180-day extension by Nasdaq to regain compliance with a key listing rule. In a strategic move, the company has reduced its outstanding debt by $2.3 million through an agreement with JGB Capital. The company has also restructured its debt by redeeming $5.2 million in principal and interest of its Omnia subordinated note and outstanding warrants.

In a bid to enhance corporate cost efficiency, 22nd Century Group has streamlined its board by accepting the immediate resignations of Directors Nora Sullivan and James Mish, reducing the board to four members. John Miller, President of Tobacco, has also tendered his resignation, set to take effect later this year.

These recent developments come as the company continues to focus on its financial health and operational efficiency. Despite these measures, 22nd Century Group acknowledges that there is no guarantee of achieving compliance, maintaining other listing requirements, or succeeding in an appeal if delisted. The firm continues to express its intention to take all reasonable measures to regain compliance with the Nasdaq listing requirement.

InvestingPro Insights

As 22nd Century Group, Inc. (NASDAQ: XXII) embarks on its environmentally conscious partnership with Greenbutts, LLC, it’s important to consider the financial health and market performance of the company. With a market capitalization of just 5.5 million USD, the company is relatively small in size.

This can often translate to higher volatility in stock performance, which is reflected in the significant price decline over the past year, with a -98.2% one-year price total return as of 2024. The InvestingPro Data also shows a concerning revenue decline of -36.57% over the last twelve months as of Q1 2024.

Two critical InvestingPro Tips for XXII are its significant debt burden and the fact that analysts do not anticipate the company will be profitable this year. These factors could affect the company’s ability to sustain its operations and investments in innovative projects like the biodegradable cigarette filters. Moreover, with short term obligations exceeding liquid assets, the company may face liquidity challenges in the near future.

For readers interested in a deeper analysis of 22nd Century Group, Inc., there are additional InvestingPro Tips available that could provide further insight into the company’s financial situation and future prospects. By using the coupon code PRONEWS24, you can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes access to valuable metrics and expert analysis to help inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.




Source link

Related Articles

Back to top button