Shares of 22nd Century Group Inc (NYSEMKT:XXII) ended Friday session in red amid volatile trading. The shares closed down -0.010 points or -1.05% at $0.925 with 752,045 shares getting traded. Post opening the session at $0.96, the shares hit an intraday low of $0.90 and an intraday high of $0.96 and the price vacillated in this range throughout the day. The company has a market cap of $80.06 million and the numbers of outstanding shares have been calculated to be 90.70 million shares.
22nd Century Group Inc (XXII) declared recently the Company’s third quarter 2016 financial results and will provide a business update.
Net sales revenue for the third quarter of 2016 were $3,098,000, a boost of $430,000, or 16.1%, over net sales revenue of $2,668,000 for the three months ended September 30, 2015. Net sales revenues for the nine months ended September 30, 2016 were $8,944,000, a boost of $3,353,000, or 60.0%, over net sales revenue of $5,591,000 for the nine months ended September 30, 2015.
For the three months ended September 30, 2016, the Company stated an operating loss of $2,596,000 as contrast to an operating loss of $2,758,000 for the three months ended September 30, 2015, a decrease in the operating loss of $162,000. The decrease in the operating loss is mainly because of a decrease in operating expenses of $65,000 and a decrease in the gross loss on product sales in the amount of $97,000. For the nine months ended September 30, 2016, the Company stated an operating loss of $8,655,000, as contrast to an operating loss of $9,238,000 for the nine months ended September 30, 2015, a decrease of $583,000. The decrease is mainly the result of a decrease in equity based compensation of $2,504,000, a decrease in the gross loss on product sales of $389,000, partially offset by a boost in other operating expenses (apart from equity based compensation) in the amount of $2,310,000.
Recent Business Highlights
In August 2016, the World Health Organization (WHO) Study Group on Tobacco Product Regulation recommended that all member countries adopt a policy limiting the sale of cigarettes only to products with a very low nicotine content. The WHO report explains that government-mandated nicotine reduction strategies utilizing Very Low Nicotine cigarettes could: 1) decrease the number of smokers addicted to cigarettes, 2) increase the number of smokers who are able to quit, and 3) reduce the number of former smokers who relapse. Commenting on the WHO report, Drs. Dorothy Hatsukami, Ghazi Zaatari and Eric Donny concluded that the WHO recommendation to limit nicotine content to a level below what is needed to sustain addiction “…has the potential to save millions of lives…”
The Company’s wholly-owned partner, Botanical Genetics LLC, declared in September 2016, an expanded cannabis research program to include multiple new research projects in support of its core mission, which is to develop proprietary cannabis strains for important new medicines and commercially viable agricultural crops. More specifically, Botanical Genetics is: 1) actively is working to optimize hemp strains for broad production in varied U.S. climates, 2) developing new technologies to manipulate the cannabis plant genome, 3) together with its partners, developing and refining cannabis varieties with cannabis profiles that eliminate THC and boost production of medically important CBD and CBC, and 4) developing the means to produce cannabinoids in tobacco plants.
In September 2016, 22nd Century also declared results from two separate independent surveys showing that strong consumer demand mirrors physicians’ willingness to prescribe the Company’s X-22 smoking cessation aid in development. Nearly 90% of smokers identified the X-22 smoking cessation product as their preferred means to assist them quit smoking. At the same time, a vast majority of physicians (more than 88%) indicated that, if the product were made available, they would prescribe X-22 for their patients.