Company: XXII
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001641172-25-014543
Chunk: 67

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 67
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 pursuant to 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.

General

As previously disclosed on a current report on Form 8-K filed with SEC on October 24, 2024, the Company and certain investors (the “Investors”) entered into a securities purchase agreement (the “Securities Purchase Agreement”) on October 23, 2024 relating to, among other things, the private placement of warrants to purchase up 59,664,818 shares of common stock (the “Warrants”) at an exercise price of $0.75 per share, which exercise price is subject to adjustment in certain circumstances, including upon any subsequent equity sales at a price per share lower than the then effective exercise price of such warrants, then such exercise price shall be lowered to such price at which the shares were offered. A copy of the Securities Purchase Agreement and the Warrants are attached as exhibits to the Company’s Form 8-K filed with the SEC on October 24, 2024. An amendment to the Warrant is included as an exhibit to the Company’s Form 8-K filed with the SEC on April 30, 2025.

The Warrants are exercisable after the receipt of stockholder approval and expire on the date that is five (5) years thereafter. The Warrants may be exercised, in certain circumstances, on a cashless basis. A holder of such warrants may also effect an alternative form of cashless exercise on or after the initial exercise date whereby the aggregate number of shares of common stock issuable in such alternative form of cashless exercise pursuant to any given notice of exercise shall equal the product of (x) the aggregate number of shares of common stock that would be issuable upon exercise of the warrant in accordance with the terms of the warrant if such exercise were by means of a cash exercise rather than a cashless exercise and (y) 2.0 (a “Zero Exercise Price Exercise”). A Zero Exercise Price Exercise will result in the issuance of two (2) shares for no additional consideration.

The aggregate number
of shares of common stock issuable upon fully exercising the Warrants effecting a Zero Exercise Price Exercise would be 119,329,636 shares
of common stock. As of June 1, 2025, we had two hundred fifty million (250,000,000) shares of common stock authorized, of which
11,