Company: XXII
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001641172-25-014543
Chunk: 32

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 32
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 classes of capital stock that we are authorized to issue is two hundred sixty million (260,000,000), consisting of (i) two hundred fifty million (250,000,000) designated as common stock, $0.00001 par value per share, and (ii) ten million (10,000,000) designated as preferred stock, $0.00001 par value per share. Our Board of Directors has determined that it is advisable to increase (i) the authorized number of shares from two hundred sixty million (260,000,000) to five hundred ten million (510,000,000) and (2) the authorized number of shares of common stock from two hundred fifty million (250,000,000) to five hundred million (500,000,000) and recommends that our stockholders approve an amendment to our Articles of Incorporation to effect the proposed increases. The amendment to the Articles of Incorporation that you are being asked to approve pursuant to this Proposal No. 4 will be substantially in the form of Appendix Aattached to this Proxy Statement.

Purpose of the Increase in Authorized Shares

As of June 1, 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). Of the remaining 238,492,378 authorized shares, 70,787,551 shares are reserved for issuance upon the exercise of issued and outstanding warrants, 627,514 shares are reserved for issuance under the convertible senior secured credit facility, 478,777 shares are reserved for issuance upon the exercise of issued and outstanding equity option awards, 159,583 shares are reserved for unvested restricted stock units and 4,694,636 shares are reserved for future issuance under our stock incentive plan (increasing to 9,694,636 shares if Proposal No. 4 is approved). Accordingly, based on the foregoing, as of June 1, 2025, there are only approximately 161,744,317 shares of our authorized common stock unreserved and available for future issuance.

Our Board believes it is in the best interest of our Company to increase the number of authorized shares of our common stock to give us greater flexibility in considering and planning for future potential business needs, including to raise additional capital in connection with future equity financings, future opportunities for expanding the business through investments or acquisitions, management incentive and employee