22nd Century Group (XXII) shares decline after restructuring of Panacea Life Sciences Investment

0

What’s going on with 22nd Century Group?

22nd Century Group, Inc. (XXII) stock was trading lower after plant-based biotech company finalized a deal to restructure its investment in Panacea Life Sciences, Inc. Shares of XXII were down 6.65% and were trading at $ 3.93 per share on Friday afternoon.

The pact swaps the existing 22nd century $ 7 million note in Panacea for the property of Needle Rock Farms, located in a Colorado hemp / cannabis cultivation site valued at $ 2.2 million. 22nd also gets a new $ 4.3 million, $ 500,000 equity note from Panacea, with the new note backed by a mortgage on the Panacea Life Sciences operating building in Golden, Colorado, valued at 10 , $ 7 million. Panacea will maintain certain agricultural assets under its own nameplate from PANA Organic Botanicals in Needle Rock.

What does this mean for XXII?

In line with an ongoing change in partnership strategy, the new agreement provides for the conversion of $ 7 million of Panacea Life Sciences Series B preferred shares held by 22nd Century into 91 million shares of Exactus, Inc. ( EXDI), as part of a business combination transaction via the exchange of shares with Panacea – through which Panacea is expected to be listed on the stock exchange.

“This exchange is an exciting leap forward for 22nd Century as we advance our upstream value chain strategy to bring highly disruptive lines of hemp and cannabis plants to market,” said James A. Mish, CEO of 22nd Century Group. “It is also very attractive to 22nd Century on a financial basis, creating immediate value, future asset-backed value and potential future liquidity from an existing investment. Needle Rock Farms is a world-class farm operation in a prime growing location where we already have plants in the ground towards our goal of revenue recognition from our cannabis franchise in the second half of 2021. We will also maintain the access to Panacea extraction, purification and testing facilities located in Golden, Colorado, for the benefit of our customers.

Mish added, “The rapidly growing demand means mass cultivation is quickly becoming the critical challenge of the cannabis industry. Most existing plant lines lack the stable genetics, predictable yield, or specific cannabinoid makeup needed to fully unleash the value of the cannabis industry. 22nd Century can provide the stable and predictable factory solutions needed to achieve true commercial scale in as little as two years versus 7-10 years with traditional processes.

XXII has a root rank of 78. Find out what that means to you and get the rest of the ranking on XXII!

22nd Century Group Inc is a United States-based plant biotechnology company. It focuses on the development of a technology to increase or decrease the level of nicotine and other nicotinic alkaloids in tobacco plants and the levels of cannabinoids in cannabis plants through genetic engineering and breeding. vegetable. The company is engaged in the research and development of potentially less harmful or modified risk tobacco products and new varieties of tobacco plants. The company’s other business activities include manufacturing, marketing, sales and distribution of proprietary SPECTRUM and VLN cigarettes, contract manufacturing of third-party branded tobacco products, research and development of hemp plant varieties. / cannabis, the sale of exclusive branded tobaccos, and among others.

Share.

Comments are closed.