Company: XXII
Filing Date: 2025-05-22
Form Type: PRE 14A
Source: 0001641172-25-012101
Chunk: 72

Company: 22nd Century Group, Inc.
Filing Date: 2025-05-22
Form: PRE 14A
Chunk 72
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20% or more of the common stock or 20% or more of the voting power outstanding before the issuance. Section 3(b) and 3(f) of the Warrants could result in the potential issuance of more than 19.99% of our outstanding common stock at below the Minimum Price under Nasdaq rules without approval of our stockholders.

Use of Proceeds

The Company intends to use the net proceeds from any Warrant exercises for general corporate purposes.

Possible Effects of the Proposal

If the stockholders do not approve this Proposal 6, then the Warrants will not be exercisable. Additionally, the failure to obtain Stockholder Approval may discourage future investors from engaging in future financings with us. If these consequences occur, we may have difficulty finding alternative sources of capital to fund our operations in the future on terms favorable to us or at all. We can provide no assurance that we would be successful in raising funds pursuant to additional equity or debt financings.

If the stockholders approve this Proposal 8, the Warrants shall become immediately exercisable. The Warrants could also have a reduced exercise price upon a dilutive issuance, which could result in substantial dilution to our stockholders.

<div align='center'>Our Board of Directors recommends that the stockholders vote “FOR” Proposal 8 to approve the issuance of the shares of common stock upon exercise of the Warrants pursuant to Rule 5635(d) of the Nasdaq Stock Market.</div>

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<div align='center'>PROPOSAL NO.9

APPROVAL OFAN AMENDMENT TO THE OUTSTANDING CONVERTIBLE DEBENTURES PURSUANT TO RULES 5635(B) AND 5635(D) OF THE NASDAQ STOCK MARKET</div>

The Board of Directors has approved and recommends to the stockholders a proposal to amend the Conversion Price (defined below) in the Debentures dated March 3, 2023, as amended on December 22, 2023, pursuant to Rule 5635(b) for a potential change in control of the Company, and Rule 5635(d) of the Nasdaq Stock Market for the potential issuance of more than 19.99% of our outstanding common stock at below the Minimum Price under Nasdaq rules.

Overview

On March 3, 2023, the Company entered into that certain Securities Purchase Agreement (the “SPA”) with JGB Partners, LP (“JGB Partners”), JGB Capital, LP (“JGB Capital”)