Company: XXII
Filing Date: 2025-12-30
Form Type: DEF 14A
Source: 0001493152-25-029651
Chunk: 21

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-30
Form: DEF 14A
Chunk 21
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 A Convertible Preferred Stock (the “Series A Preferred”) pursuant to Rule 5635(d) of the Nasdaq Stock Market for the potential issuance of more than 19.99% of our outstanding common stock at below the Minimum Price under Nasdaq rules.

General

As previously disclosed on Current Reports on Form 8-K filed with SEC on August 25, 2025 and December 17, 2025, we sold shares of Series A Preferred and warrants to purchase shares of Common Stock pursuant to a registered direct offering. The investors purchased approximately $10.65 million of shares of Series A Preferred and warrants.

The Series A Preferred is convertible into common stock at any time at an initial conversion price of $2.19 and, upon the receipt of stockholder approval, subject to adjustment for certain anti-dilution provisions set forth in the Series A Certificate of Designation (the “Series A Conversion Price”), subject to a floor price of $0.394 (the “Floor Price”). The following sections of the Certificate of Designations establishing the Series A Preferred (the “Certificate of Designations”) would potentially result in the Series A Conversion Price being lowered and the number of shares of common stock issuable increasing as follows:

Section 7(b) of the Certificate of Designations provides as follows:

“ Section 7. Certain Adjustments.

b) Subsequent Equity Sales. If, following the Stockholder Approval Date at any time while the Preferred Stock is outstanding, the Corporation or any Subsidiary, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “ Base Conversion Price” and such issuances, collectively, a “ Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the