MOCKSVILLE, NC - 22nd Century (NASDAQ:XXII) Group, Inc. (NASDAQ: XXII), a biotechnology company specializing in tobacco harm reduction, announced the immediate resignations of Directors Nora Sullivan and James Mish. The company will not fill these vacancies, opting instead to reduce its board to four members. This move is part of a broader strategy to enhance corporate cost efficiency.
Chairman and CEO Larry Firestone expressed gratitude to the departing directors for their service and outlined the cost-saving measures, "We plan to reduce the size of the board in 2024, in addition to the previously announced reduction in board compensation, consistent with our efforts to achieve breakeven operations." He projected annual savings of over $1 million resulting from the changes.
22nd Century Group focuses on reducing nicotine in tobacco products and leveraging plant science for health and wellness. It holds numerous patents for controlling nicotine production in tobacco plants.
The company's reduced nicotine content (RNC) tobacco plants and cigarettes are integral to the FDA's plan to combat smoking-related health issues. In December 2021, the company received the first FDA Modified Risk Tobacco Product authorization for a combustible cigarette.
The company utilizes advanced plant breeding technologies, such as genetic engineering and gene-editing, to create proprietary plants with optimized profiles and improved agricultural traits.
The information in this article is based on a press release statement from 22nd Century Group. The company's forward-looking statements in the press release, including its business outlook and cost reduction initiatives, are subject to risks and uncertainties detailed in its Annual Report on Form 10-K filed on March 28, 2024.
InvestingPro Insights
In light of the recent board changes at 22nd Century Group, Inc. (NASDAQ: XXII), investors may be considering the company's financial health and market performance. According to InvestingPro, 22nd Century Group operates with a significant debt burden and may have trouble making interest payments on its debt. These concerns are critical as the company strives to streamline operations and achieve cost efficiencies.
From a market perspective, the company's stock has faced challenges, with a price that has fallen significantly over the last year and an overall poor performance over the last decade. This is reflected in the company's market capitalization, which stands at a modest 9.58 million USD, and a negative price to earnings (P/E) ratio, indicating that the company is not currently profitable.
InvestingPro Data further shows a revenue decline of approximately 21.85% in the last twelve months as of Q4 2023, underscoring the importance of the company's cost reduction initiatives. The gross profit margin is notably weak at -39.91%, which could be a concern for potential investors interested in the company's ability to turn a profit.
For those considering an investment in 22nd Century Group, it's worth noting that analysts anticipate sales growth in the current year, despite the company's recent financial performance. For a deeper dive into the company's prospects and more InvestingPro Tips, including detailed financial metrics and expert analysis, visit InvestingPro. There are 17 additional tips available to help you make an informed decision. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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