Company: XXII
Filing Date: 2025-04-30
Form Type: 8-K
Source: 0001641172-25-006804
Chunk: 2

Company: 22nd Century Group, Inc.
Filing Date: 2025-04-30
Form: 8-K
Item: Item 1.01
Chunk 2
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arrants Effectiveness Date and the
date of Stockholder Approval Date, the Company will be prohibited from effecting or entering into an agreement to effect any issuance
by the Company or any of its subsidiaries of common stock or common stock equivalents (or a combination of units thereof) involving a
Variable Rate Transaction (as defined in the agreement ).

The Company will
receive aggregate gross proceeds of approximately $5.4 million from the initial exercise of 60% of the Existing Warrants and $8.8
million if all of the Existing Warrants are exercised.

Dawson James Securities, Inc.
(the “ Placement Agent”) acted as the Company’s exclusive placement agent in connection with the Warrant Inducement
and the Company has agreed to pay the Placement Agent a cash fee equal to six percent (6.0%) of the aggregate gross proceeds raised in
the Warrant Inducement, an additional six percent (6.0%) cash fee of any cash exercise of the Inducement Warrants and to reimburse the
Placement Agent for its expenses, including the reimbursement of legal fees up to an aggregate of $25,000.

The foregoing summaries
of the Inducement Warrants and the inducement letters do not purport to be complete
and are subject to, and qualified in their entirety by, such documents attached as Exhibits 4.1 and 10.1, respectively, to
this Current Report, which are incorporated herein by reference.

Warrant Amendment

On April 29,
2025, the Company entered into amendments (the “ Warrant Amendments”) with the holders (“ Holders”)
of the outstanding warrants issued on October 24, 2024 (the “ PIPE Warrants”).

Pursuant to the Warrant
Amendments, the Company agreed (i) to amend the alternative cashless exercise provision so that each Holder will receive two (2)
shares of common stock upon the cashless exercise of each PIPE Warrant instead of 0.75 shares, (ii) apply Section 3(f) in the
PIPE Warrants regarding Share Combination Events (as defined in the PIPE Warrants) to one (1) additional Share Combination Event,
and (iii) to modify the Event Market Price (as defined in the PIPE Warrants) applicable in the case of a Share Combination Event
to $0.75.

The foregoing description
of the Warrant Amendments is not complete and is qualified in its entirety by reference to the full text of the
form of such