Company: XXII
Filing Date: 2025-08-26
Form Type: 424B5
Source: 0001641172-25-025541
Chunk: 10

Company: 22nd Century Group, Inc.
Filing Date: 2025-08-26
Form: 424B5
Chunk 10
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 also to changes in sentiment in the market regarding the industry in which we operate, our operations, business prospects or liquidity, or this offering. In addition to the risk factors discussed in our periodic reports and in this prospectus supplement, the price and volume volatility of our common stock may be affected by actual or anticipated sales of common stock by us and/or our directors, officers or stockholders, whether in the market, in connection with business acquisitions, in this offering or in subsequent public offerings. Stock markets in general have at times experienced extreme volatility unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock, regardless of our operating results.

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As a result, these fluctuations in the market price and trading volume of our common stock may make it difficult to predict the market price of our common stock in the future, cause the value of your investment to decline and make it more difficult to resell our common stock.

Management will have broad discretion as to the use of the proceeds of this offering, and we may use the proceeds in ways in which you and other stockholders may disagree.

Other than with respect to the repayment of our Senior Secured Credit Facility, we have not designated the amount of net proceeds we will receive from this offering for any particular purpose. We may use a portion of the net proceeds to acquire or invest in new or different businesses, products and intellectual property. Our management will have broad discretion over the use and investment of the net proceeds from this offering, and, accordingly, investors in this offering will need to rely upon the judgment of our management with respect to the use of proceeds, with only limited information concerning our specific intentions. Our stockholders may not agree with the manner in which our management chooses to allocate and spend the net proceeds.

Investors in this offering will experience immediate and substantial dilution.

The effective offering price per share of Common Stock underlying the Series A Preferred Stock is substantially higher than the as adjusted pro forma historical net tangible book value per share of our common stock after this offering. Therefore, if you purchase shares of Series A Preferred Stock in this offering, you will pay a price that substantially exceeds our as adjusted pro forma net tangible book value per share after this offering. Please refer to the section below entitled “Dilution” for more information.

We may be unable to redeem the Series A Preferred Stock if required.

The Series A Preferred Stock is convertible into Common Stock at any time at an initial conversion price of $2.19 and, upon