Company: XXII
Filing Date: 2025-08-26
Form Type: 424B5
Source: 0001641172-25-025541
Chunk: 22

Company: 22nd Century Group, Inc.
Filing Date: 2025-08-26
Form: 424B5
Chunk 22
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 50% of the then outstanding shares of Series A Preferred Stock shall have otherwise given prior written consent, the Company cannot, subject to certain exceptions enter into, create, incur, assume, guarantee or suffer to exist any indebtedness (as defined in the Certificate of Designations) exceeding $100,000.

Trading Market

There is no established trading market for any of the Series A Preferred Stock, and we do not expect a market to develop. We do not intend to apply for a listing for any of the Series A Preferred Stock on any securities exchange or other nationally recognized trading system. Without an active trading market, the liquidity of the Series A Preferred Stock will be limited.

Warrants

We are offering Warrants to purchase 9,460,661 shares of Common Stock. The Warrants are immediately exercisable at an exercise price of $1.97 per share of Common Stock and expire on the date that is five (5) years after issuance. We are also registering up to 9,460,661 shares of Common Stock issuable up exercise of the Warrants (the “Warrant Shares”).

A holder of Warrants will have the right to exercise the common warrants on a “cashless” basis if there is no effective registration statement registering the resale of the Warrant Shares. Subject to limited exceptions, a holder of Warrants will not have the right to exercise any portion of its Warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or 9.99% at the election of the holder prior to the date of issuance) of the number of shares of our common stock outstanding immediately after giving effect to such exercise, provided that the holder may increase or decrease the beneficial ownership limitation up to 9.99%. Any increase in the beneficial ownership limitation shall not be effective until 61 days following notice of such change to us. In addition, as more fully described in the form of Warrant filed as an exhibit to our Current Report on Form 8-K filed with the Securities and Exchange Commission on August 25, 2025, in certain circumstances, upon a fundamental transaction, the holder will have the right to require us to repurchase its common warrants at the Black Scholes value.

Except as otherwise provided in the Warrants or by virtue of such holder’s ownership of shares of our Common Stock, the holders of the Warrants do not have the rights or privileges of holders of our common stock, including any voting rights, until they exercise their W