Company: XXII
Filing Date: 2025-06-10
Form Type: PRER14A
Source: 0001641172-25-014371
Chunk: 72

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: PRER14A
Chunk 72
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 stockholder approval and expire on the date that is five (5) years thereafter. The Inducement 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 22,144,186 shares of common stock. As of May 16, 2025, we had two hundred fifty million (250,000,000) shares of common stock
authorized, of which 11,507,622 shares were issued and outstanding (including 3,901,815 shares held in abeyance)

The Inducement Warrants are 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. Additionally, if at any time on or after the date of issuance there occurs a share combination event such as stock split, stock dividend, stock combination, recapitalization or other similar transaction involving our common stock, such as the proposed Reverse Split included herein in Proposal 6, the exercise price shall be reduced to $0.75 and the number of shares issuable shall be increased such that the aggregate exercise price, after taking into account the decrease, shall be equal to the aggregate exercise price on the issuance date. Section 3(b) or Section 3(f) of the Warrants provides as follows:

b) Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell, enter into an agreement to sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer,