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    Andrew White • Analyst

    Andrew White is a Managing Director and Senior Research Analyst at Jefferies, specializing in covering the enterprise software sector with a focus on companies like Salesforce, Workday, ServiceNow, and Coupa Software. He is recognized for his strong performance on platforms like TipRanks with a success rate above 60% and average annual returns exceeding 15%, frequently ranking among top industry analysts. Andrew began his career as a consultant before moving into equity research at firms such as Morgan Stanley and subsequently joining Jefferies in 2016. He holds FINRA Series 7, 63, 86, and 87 licenses and has been featured for his research insights in major financial media and institutional rankings.

    Andrew White's questions to 22nd Century Group Inc (XXII) leadership

    Andrew White's questions to 22nd Century Group Inc (XXII) leadership • Q2 2025

    Question

    The analyst inquired about the updated timeline for achieving EBITDA breakeven, the sufficiency of current cash reserves to reach that point, plans for handling debt maturing in 2026, and the likelihood of the VLN MRTP authorization being renewed by the FDA.

    Answer

    Management now expects to reach EBITDA breakeven in the first half of 2026, likely Q2. They acknowledged that a near-term capital raise might be necessary, though smaller than past raises. The company is in discussions to pay off its debt and is highly confident that the VLN MRTP will be renewed, given its alignment with the FDA's proposed mandate.

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    Andrew White's questions to 22nd Century Group Inc (XXII) leadership • Q2 2025

    Question

    Andrew White of Emerging Growth Research inquired about the revised timeline for achieving EBITDA breakeven, the sufficiency of the current cash balance to reach that point, plans for handling debt maturing in 2026, and the potential risk of the FDA not renewing the MRTP authorization for VLN products.

    Answer

    CFO Dan Otto projected EBITDA breakeven for the first half of 2026, likely Q2, contingent on the sales velocity of new branded products. CEO Larry Firestone addressed liquidity, stating that while the shift away from low-margin business helps preserve capital, a near-term capital raise is possible, though smaller than previous ones. Firestone also noted they are in discussions to pay off and extinguish outstanding debt. Regarding the MRTP renewal, he expressed high confidence, stating there is 'very little chance' it won't be renewed as VLN aligns with and enables the FDA's proposed low-nicotine mandate.

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    Andrew White's questions to 22nd Century Group Inc (XXII) leadership • Q1 2025

    Question

    Andrew White inquired about 22nd Century's ability to achieve its EBITDA breakeven target for late 2025, the growth drivers for its CMO and VLN products, and the implications of a large increase in accounts receivable on future capital needs. He also asked for details on share dilution from warrant exercises and the impact of broader tobacco industry trends on the company's growth trajectory.

    Answer

    CFO Dan Otto confirmed the company remains on track for EBITDA breakeven in the latter half of 2025 and has sufficient cash runway following a recent financing. He explained the rise in accounts receivable is tied to a new contract asset with standard collection terms. CEO Larry Firestone added that growth will be driven by expanding the Smoker Friendly and Pinnacle value brands and the progressive rollout of VLN products. Firestone also noted that price hikes by major tobacco companies are creating opportunities for 22nd Century's Tier 4 value products. Both executives affirmed that the CMO business has passed its low point and is now on a growth path.

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    Andrew White's questions to 22nd Century Group Inc (XXII) leadership • Q4 2024

    Question

    Andrew White inquired whether the termination of unprofitable contract manufacturing organization (CMO) contracts was concluded in 2024 and sought confirmation on the company's target to achieve breakeven EBITDA by the fourth quarter of 2025.

    Answer

    CEO Lawrence Firestone confirmed that the CMO contract restructuring was a '2024 story' and is now complete, with production resuming under new, more favorable economic terms. He also reaffirmed that the company's outlook to reach breakeven EBITDA in Q4 2025 remains on track.

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