Andrew White

- 22nd Century Group, Inc. (XXII) has secured **$9.5 million in cash proceeds** from the settlement of an insurance claim related to the November 2022 Grass Valley incident.  **[1347858_0001493152-25-014813_ex99-1.htm:0]** **[1347858_0001493152-25-014813_form8-k.htm:1]** 
- The settlement agreement was reached on **September 18, 2025**, with the payment required within 45 days of this effective date.  **[1347858_0001493152-25-014813_ex99-1.htm:0]** **[1347858_0001493152-25-014813_form8-k.htm:1]** 
- The company's CEO stated that this non-dilutive cash, combined with the company being **debt-free**, positions them to drive to **profitability in 2026**.  **[1347858_0001493152-25-014813_ex99-1.htm:0]**

XXII Secures $9.5 Million Cash Proceeds from Insurance Claim Settlement

- 22nd Century Group, Inc. (XXII) announced it has achieved a **debt-free balance sheet** after repaying the remaining **$3.9 million** of its senior secured debt in full on September 18, 2025, following a Series A convertible preferred stock offering.  **[1347858_0001493152-25-014065_ex99-1.htm:0]** **[1347858_0001493152-25-014065_form8-k.htm:1]** 
- This repayment eliminated cash interest and amortization expenses, and the company's CEO noted that over **$20 million** in senior secured and subordinated debt has been eliminated since he joined.  **[1347858_0001493152-25-014065_ex99-1.htm:0]** 
- The completion of the Series A offering and debt repayment resulted in an approximate **$9.1 million increase in as adjusted pro forma net tangible book value**, or approximately **$1.05 per share**.  **[1347858_0001493152-25-014065_ex99-1.htm:0]** 
- Management plans to deploy a portion of this new capital to expand its very low nicotine tobacco leaf inventory in **Q4 2025**, which is expected to support the production of more than **1 million cartons of VLN combustible products**.  **[1347858_0001493152-25-014065_ex99-1.htm:0]**

22nd Century Group Announces Debt-Free Balance Sheet and New Growth Capital

- **22nd Century Group, Inc.** entered into a securities purchase agreement on **August 22, 2025**, for a registered direct offering.  **[1347858_0001641172-25-025279_form8-k.htm:1]** 
- The offering includes the sale of **$10.65 million** of **Series A Convertible Preferred Stock** and warrants to purchase common stock.  **[1347858_0001641172-25-025279_form8-k.htm:1]** 
- The Series A Preferred Stock is initially convertible into **4,863,013 shares of common stock** at an initial conversion price of **$2.19**, and the warrants are exercisable at **$1.97 per share**.  **[1347858_0001641172-25-025279_form8-k.htm:1]** 
- The company expects to receive approximately **$10 million** in net proceeds, which will be used to repay outstanding indebtedness and for working capital.  **[1347858_0001641172-25-025279_form8-k.htm:1]** 
- The offering is expected to close on **August 26, 2025**, and the company will seek stockholder approval for the transaction within **90 days** of closing.  **[1347858_0001641172-25-025279_form8-k.htm:1]** **[1347858_0001641172-25-025279_ex10-1.htm:33]**

22nd Century Group (XXII)