22nd Century Group, Inc. (XXII): History, Ownership, Mission, How It Works & Makes Money

Ever wondered if there's a company dedicated to reducing the harm caused by smoking? 22nd Century Group, Inc. (XXII), a plant biotechnology company, stands out with its focus on improving health through innovative plant science, but how exactly does it operate and generate revenue, especially with a reported net revenue decrease to $4.0 million in Q4 2024? Dive in to explore the history, ownership structure, and mission of this intriguing company.

Founded in 1998, 22nd Century Group, Inc. (Nasdaq: XXII) is an agricultural biotechnology company focused on improving health and wellness through plant science. The company's primary mission in tobacco is to reduce the harm caused by smoking. Their VLN® reduced nicotine content tobacco cigarettes contain 95% less nicotine than conventional cigarettes and are the only FDA-authorized cigarettes designed to help smokers reduce their nicotine intake.

In 2024, 22nd Century Group's revenue (TTM) was reported at approximately ₹1.02 Billion. However, the company's financial results for 2024 indicate a challenging period, with a net loss increasing to $4.2 million and an adjusted EBITDA loss of $3.9 million. Despite these challenges, the company is implementing a growth strategy for 2025, leveraging both internal and external brand assets.

As of April 10, 2025, the share price was $0.95 per share, a significant decline of 99.56% from $216.00 on April 11, 2024. Institutional ownership includes 35 institutional owners and shareholders holding a total of 56,441 shares. Major shareholders include Susquehanna International Group, Llp, Anson Funds Management LP, and Bank of America Corp /de/.

22nd Century Group, Inc. (XXII) History

22nd Century Group's Founding Timeline

Year established

22nd Century Group was founded in 1998.

Original location

The company is headquartered in Buffalo, New York.

Founding team members

While specific names of the original founding members are not widely publicized, the company was formed with a vision centered on biotechnology and plant genetics.

Initial capital/funding

Details on the initial capital or funding for 22nd Century Group's founding are not readily available in the provided search results.

22nd Century Group's Evolution Milestones

22nd Century Group's Transformative Moments

• FDA's Stance on Nicotine Reduction: The FDA's increasing focus on reducing nicotine levels in cigarettes has been a pivotal moment, aligning with 22nd Century Group's core technology and mission.
• Modified Risk Tobacco Product (MRTP) Designation: Receiving the MRTP designation from the FDA for VLN cigarettes marked a significant regulatory milestone, allowing the company to market its product as having a reduced risk profile.
• Commercial Launch of VLN: The successful launch of VLN cigarettes in the U.S. represented a transition from research and development to commercialization, demonstrating the viability of the company's technology in the market.
• Acquisition and Divestiture Strategies: Strategic decisions to acquire companies like Needle Rock Farms and later divest non-core assets reflect the company's adaptability and focus on its primary goals.

For more insights into the investors behind the company, check out this link: Exploring 22nd Century Group, Inc. (XXII) Investor Profile: Who’s Buying and Why?

22nd Century Group, Inc. (XXII) Ownership Structure

Understanding the ownership structure of 22nd Century Group, Inc. provides key insights into who controls the company and whose interests are most closely aligned with its performance.

22nd Century Group, Inc.'s Current Status

22nd Century Group, Inc. is a public company, meaning its shares are traded on a stock exchange and available for purchase by the general public. As of December 31, 2024, there were 166,551,301 shares of common stock outstanding.

22nd Century Group, Inc.'s Ownership Breakdown

The ownership of 22nd Century Group, Inc. is distributed among various types of shareholders, including institutional investors, individual investors, and company insiders. Here's an approximate breakdown:

22nd Century Group, Inc.'s Leadership

The leadership team is responsible for the strategic direction and day-to-day operations of the company. Key members of the leadership team as of April 2025 include:

• James A. Mish: President and Chief Executive Officer
• Richard Fitzgerald: Chief Financial Officer

Delve deeper into the financial health of the company: Breaking Down 22nd Century Group, Inc. (XXII) Financial Health: Key Insights for Investors

22nd Century Group, Inc. (XXII) Mission and Values

22nd Century Group is dedicated to improving human health through plant science, particularly by reducing the harm caused by smoking.

22nd Century Group's Core Purpose

Official mission statement

The mission is to sell the last cigarette before the 22nd Century.

• They aim to offer smokers the option to take control of their nicotine consumption.
• Instead of new ways of delivering nicotine to addicted smokers, they offer smokers the option to make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether.

Vision statement

22nd Century Group is a leading agricultural biotechnology company focused on improving health and wellness through plant science.

• They focus on technologies that alter the level of nicotine in tobacco plants through genetic engineering, gene-editing, and modern plant breeding.
• The company's primary mission in tobacco is to greatly reduce the harm caused by smoking by bringing their reduced nicotine content tobacco cigarettes – containing 95% less nicotine than conventional cigarettes – to adult smokers in the U.S. and international markets.

Company slogan/tagline

• Empowering plants for a healthier future.
• Helps You Smoke Less®.

For more information, you can visit: Mission Statement, Vision, & Core Values of 22nd Century Group, Inc. (XXII).

22nd Century Group, Inc. (XXII) How It Works

22nd Century Group, Inc. is an agricultural biotechnology company focused on tobacco harm reduction, nicotine biosynthesis, and plant-based drug delivery. They engineer plants to modify nicotine levels in tobacco and cannabinoids in hemp/cannabis.

22nd Century Group, Inc.'s Product/Service Portfolio

22nd Century Group, Inc.'s Operational Framework

22nd Century Group operates through the following key processes:

• Plant Biotechnology: Utilizing genetic engineering to modify nicotine levels in tobacco plants and cannabinoid profiles in hemp/cannabis plants.
• Regulatory Approvals: Obtaining regulatory approvals from the FDA for Modified Risk Tobacco Products (MRTP) such as VLN cigarettes.
• Manufacturing: Producing VLN cigarettes and potentially other tobacco products for commercial sale.
• Research and Development: Continuing research to develop new plant varieties and technologies.

22nd Century Group, Inc.'s Strategic Advantages

22nd Century Group's strategic advantages include:

• Proprietary Technology: Owning patents and proprietary technology for reducing nicotine in tobacco plants.
• FDA Authorization: VLN cigarettes are the first and only combustible cigarettes authorized by the FDA as Modified Risk Tobacco Products (MRTP).
• Strategic Partnerships: Collaborating with government agencies and other organizations for research and development.
• Focus on Harm Reduction: Addressing the public health issue of smoking-related diseases by offering products with reduced nicotine content.

To gain more insights into 22nd Century Group, Inc., explore: Exploring 22nd Century Group, Inc. (XXII) Investor Profile: Who’s Buying and Why?

22nd Century Group, Inc. (XXII) How It Makes Money

22nd Century Group, Inc. primarily generates revenue through the research, development, and commercialization of reduced nicotine tobacco products and plant-based technologies.

22nd Century Group, Inc.'s Revenue Breakdown

As the data about revenue streams and specific percentages may fluctuate and is highly dependent on the fiscal year being examined, I will create a sample table. Please note that to get precise, up-to-date figures, consulting the latest financial reports from 22nd Century Group, Inc. is essential.

22nd Century Group, Inc.'s Business Economics

The company's business economics are influenced by several factors:

• Regulatory Landscape: Government regulations regarding nicotine levels in tobacco products significantly impact the demand and marketability of 22nd Century Group's reduced nicotine cigarettes.
• Production Costs: The cost of growing and processing proprietary tobacco varieties affects the company's gross margins.
• Market Adoption: Consumer acceptance of reduced nicotine products and their willingness to switch from traditional cigarettes are critical for revenue growth.
• Intellectual Property: Patents and proprietary technologies related to nicotine reduction provide a competitive advantage and potential licensing revenue.

22nd Century Group, Inc.'s Financial Performance

Analyzing the company's financial performance involves looking at key metrics:

• Revenue Growth: The rate at which sales are increasing, particularly for VLN cigarettes, indicates market penetration and acceptance.
• Gross Margin: The difference between revenue and the cost of goods sold, reflecting the efficiency of production and pricing strategies.
• Operating Expenses: Monitoring research and development, sales, and administrative costs is crucial to assess profitability.
• Net Income/Loss: The bottom-line figure shows overall profitability, considering all revenues and expenses.
• Cash Flow: Analyzing cash from operations, investing, and financing activities reveals the company's ability to fund its operations and growth.

To gain more insights into the company's financial standing, consider reading: Breaking Down 22nd Century Group, Inc. (XXII) Financial Health: Key Insights for Investors

22nd Century Group, Inc. (XXII) Market Position & Future Outlook

22nd Century Group, Inc. is strategically positioned to capitalize on the growing demand for reduced nicotine tobacco and innovative plant-based solutions, although it faces significant competition and regulatory hurdles.

Competitive Landscape

Opportunities & Challenges

Industry Position

22nd Century Group aims to lead in reduced nicotine tobacco products and leverage plant biotechnology. Key aspects of their industry position include:

• Regulatory Landscape: The company's Modified Risk Tobacco Product (MRTP) designation for VLN cigarettes from the FDA provides a significant competitive advantage.
• Market Niche: Focusing on the niche market of reduced nicotine cigarettes allows the company to target health-conscious consumers and those seeking to quit smoking.
• Technological Edge: Proprietary technology in reducing nicotine levels in tobacco plants gives them a unique selling proposition.

For more in-depth insights into the company's investor profile, check out: Exploring 22nd Century Group, Inc. (XXII) Investor Profile: Who’s Buying and Why?