Emerging Growth Research Releases New Initiation Report on the 22nd Century Group (XXII)

Core Viewpoint - Emerging Growth Research has released a new initiation report on 22nd Century Group, highlighting significant operational and financial restructuring under new management, with the remaining issue being the warrant overhang [1][3]. Financial Performance - The new management has successfully reduced operating cash losses in the first nine months of 2024 and decreased the Company's debt load in early 2025 [3]. - The Company anticipates reaching EBITDA breakeven by Q4 2025, driven by stabilized CMO sales, a revamped VLN® strategy, and disciplined expense management [3]. Market Position and Strategy - 22nd Century Group provides contract manufacturing services for conventional tobacco products and sells its proprietary VLN® very-low-nicotine tobacco products, focusing on nicotine harm reduction [5]. - The Company aims to enable smokers to take control of their nicotine consumption, positioning itself as a pioneer in the tobacco industry [5]. Outlook and Challenges - Despite past concerns regarding bankruptcy and share dilution, the outlook for the Company has improved significantly, with a focus now on growth and profitability [4]. - The shares of 22nd Century Group remain undervalued due to historical restructuring efforts and lingering bankruptcy risks from late 2023 [4].