On March 20, 2026, 22nd Century Group, Inc. announced that it has entered into a securities purchase agreement with certain investors for the offer and sale of up to $20 million of shares of Series B Convertible Preferred Stock and warrants to purchase shares of common stock. The initial closing is expected to occur on March 24, 2026, subject to customary closing conditions. This offering follows stockholder approval obtained at a special meeting held on February 20, 2026. At the initial closing, approximately $16 million of Series B Preferred Stock and warrants will be purchased, with the remaining $4 million expected to be purchased at a second closing. The Series B Preferred Stock will be convertible into common stock at a fixed conversion price of $3.57, or alternatively at a 15% discount to the lowest daily volume-weighted average price during the prior 20 trading days, subject to a floor price. The company plans to use the net proceeds from this offering to repurchase outstanding Series A Convertible Preferred Stock and for general working capital purposes. The terms of the offering include anti-dilution protections and restrictions on the issuance of additional shares until 30 days after the initial closing, ensuring that the interests of the investors are safeguarded during this period.

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