Company: XXII
Filing Date: 2025-06-10
Form Type: PRER14A
Source: 0001641172-25-014371
Chunk: 35

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: PRER14A
Chunk 35
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 of 4,694,636 shares of common stock available under the Plan, before any increase in available shares takes effect. As of May 16, 2025, there were outstanding awards under the Plan relating to 638,360 shares, consisting of one (1) option to purchase 478,777 shares with a weighted average exercise price of $2.01 and an average remaining term of 10 years, and two (2) restricted stock or restricted stock unit awards relating to 159,583 shares.

Our amended and restated certificate of incorporation authorizes the issuance of 250,000,000 1shares of common stock. There were 11,507,622 shares of common stock issued and outstanding (including 3,901,815 shares held in abeyance), as of May 16, 2025 and the market value of a share of common stock as of that date was $1.08.

To determine the number of shares of common stock to be authorized under the Plan, our Board considered the number of shares remaining available under the Plan, the needs of our Company for shares, based on the current and expected future equity grant mix, and the potential dilution that awarding the requested shares may cause to existing stockholders.

Taking into consideration the factors described above, our Board determined that 5,000,000 additional shares should be authorized under the Plan. We estimate that the additional 5,000,000 shares that will be reserved for issuance under the Plan if the Plan is approved could result in a significant potential dilution to our existing stockholders, based on the 11,507,622 shares of common stock issued and outstanding (including 3,901,815 shares held in abeyance) as of May 16, 2025.

Because this proposal to approve the Plan does not contemplate the amount or timing of specific equity awards in the future, it is not possible to calculate with certainty the number of years of awards that will be available and the amount of subsequent dilution that may ultimately result from such awards.

Summary of the Terms of the Plan

The following is a summary of the material provisions of the Plan, a copy of which is attached hereto as Appendix Band incorporated by reference herein. This summary is qualified in its entirety by reference to the full and complete text of the Plan. Any inconsistencies between this summary and the text of the Plan will be governed by the text of the Plan.

There will be 500,000,000 shares of common stock authorized if Proposal