Company: XXII
Filing Date: 2025-05-22
Form Type: PRE 14A
Source: 0001641172-25-012101
Chunk: 73

Company: 22nd Century Group, Inc.
Filing Date: 2025-05-22
Form: PRE 14A
Chunk 73
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 and JGB Capital Offshore Ltd. (“JGB Offshore” and collectively with JGB Partners and JGB Capital, the “Holders”) and JGB Collateral, LLC, as collateral agent for the Holders (the “Agent”). Pursuant to the SPA, the Holders purchased (i) 7% Original Issue Discount Senior Secured Debentures (the “Debentures”) of the Company and (ii) warrants to purchase up to 153 shares (after the redemption of 78 warrants) shares of the Company’s common stock, par value $0.00001 per share.

On December 22, 2023, the Company entered into an Amendment Agreement (the “JGB Amendment”) pursuant to which the Company agreed to amend the Debentures to allow the Holders to voluntarily convert the Debentures, in whole or in part, into shares of the Company’s common stock (“Voluntary Conversion Option”) at a conversion price equal to the lower of (x) $2160.00 per share and (y) the closing sale price of the Company’s common stock on June 29, 2024 (the “Conversion Price”), along with other concessions. The Conversion Price was set at $100.683 on June 29, 2024 after the Voluntary Conversion Option was approved by the Company’s stockholders on June 28, 2024.

On October 9, 2024, the Company entered into that certain Letter Agreement (“October 2024 Letter Agreement”) with the Holders and Agent whereby the Company was granted the right, on a one-time basis, to reset the Conversion Price in effect to an amount equal to the average of the daily volume weighted average prices (VWAPs) for each of the five (5) consecutive Nasdaq trading days immediately preceding the date on which the Conversion Price shall be reset (the “Reset Conversion Price”); provided, however, that Reset Conversion Price shall in no event be greater than the Conversion Price (as adjusted in accordance with the terms of the Debentures) in effect on the date of the October 2024 Letter Agreement, which is $0.7458.

Under the terms of the October 2024 Letter Agreement, as approved by the stockholders at the December 6, 2024 special meeting of stockholders, the Company was granted approval to reset the Conversion Price (as defined in the Debentures) currently in effect, at the discretion of the Board of Directors and on a