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22nd Century Group (NYSE MKT "XXII") purchases strategically important intellectual property from NRCC

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22nd Century Group, symbol XXII on the NYSE MKT, has purchased strategically important intellectual property, including patents and patent applications, from the National Research Council of Canada.

Additional Information:

Company: 22nd Century Group
Website: http://www.xxiicentury.com/
Stock Symbol: NYSE MKT "AMX"
Date Published: Dec 30, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

22nd Century Group, symbol XXII on the NYSE MKT, has purchased strategically important intellectual property, including patents and patent applications, from the National Research Council of Canada.

The company, through its wholly-owned subsidiary, 22nd Century Limited, will pay NRC a total of $1,873,000 US dollars, of which $873,000 was paid on December 23rd, with the balance of $1 million to be paid in 3 annual installments.

22nd Century is a plant biotechnology company whose proprietary technology allows for the levels of nicotine and other nicotinic alkaloids 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.

The NRC intellectual property is the cornerstone of the Company’s tobacco harm reduction products under development, and allows for the production of the world’s lowest nicotine cigarette, up to 98% less nicotine than that of “light” cigarettes, and the world’s lowest tar-to-nicotine ratio cigarette.

22nd Century now owns or is the exclusive licensee of 128 issued patents plus an additional 53 pending patent applications.

Henry Sicignano III, President & COO stated: “This acquisition not only provides 22nd Century with more operational flexibility through full control and ownership of the NRC patent rights, it also promises savings of potentially many millions of dollars in royalty fees.”

The value of the technology was validated by British American Tobacco in October of 2013 when it signed a worldwide research license agreement with 22nd Century.

22nd Century received a $7 million payment in Q4 of 2013 and is expecting an additional $7 million over the next 12-18 months.

In a November 17th research report, Chardan Capital Markets’ analyst James McIlree reiterated his $9.00 price target, a premium of 320% to the $2.14 price on the day the report was issued.

James McIlree stated “We expect meaningful revenues to begin from a number of sources including a license agreement with British American Tobacco and commercial product sales from the company’s proprietary RED SUN and MAGIC brands. Over the longer-term 22nd Century will pursue the $1 billion US smoking-cessation market with its proprietary X-22 cigarette, and will file with the FDA applications for modified risk cigarettes.”

22nd Century is trading at $1.65 and with 64.3 million shares outstanding, the company is capitalized at $106 million.

For more information please visit the company’s website www.xxiicentury.com.

Investor relations is handled by Tom Redington, who can be reached at 203-222-7399 or email tredington@redingtoninc.com.

For more information about Chardan Capital Markets or to obtain a copy of their research report, visit www.chardancm.com.


I’m Samantha Deutscher for Investmentpitch Media
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