Company: XXII
Filing Date: 2025-12-30
Form Type: DEF 14A
Source: 0001493152-25-029651
Chunk: 29

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-30
Form: DEF 14A
Chunk 29
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 daily dollar trading volume for the Common Stock exceeds a per day dollar threshold during such period, the Company may require the holders to convert the New Preferred Stock into Common Stock at the Conversion Price.

Voluntary Adjustment. Subject to the rules and regulations of the Nasdaq Stock Market, the Company may at any time any shares of New Preferred Stock remain outstanding, with the prior written consent of the holders owning a majority of the shares of New Preferred Stock issued and outstanding on such date, reduce the then current Conversion Price to any amount and for any period of time deemed appropriate by the Board, subject to the Floor Price.

Alternate Conversion.At a holder’s option, it may convert all, or any part of, the New Preferred Stock into shares of Common Stock at a Conversion Price equal to the higher of (i) 85% of the lowest daily VWAP in the twenty (20) trading days prior to the applicable conversion date, and (ii) the Floor Price.

Beneficial Ownership Limitation. The New Preferred Stock cannot be converted to Common Stock if the holder and its affiliates would beneficially own more than 4.99% (or 9.99% at the election of the holder) of the outstanding Common Stock. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such notice.

Preemptive Rights .No holders of New Preferred Stock will, as holders of New Preferred Stock, have any preemptive rights to purchase or subscribe for Common Stock or any of our other securities.

Redemption.At any time following a period of time after the issuance date, the Company may redeem all or a portion of the shares of New Preferred Stock outstanding by delivering notice days prior equal to a percentage above the Stated Value per share of New Preferred Stock being redeemed.

Negative Covenants. As long as any New Preferred Stock is outstanding, unless the holders of more than a percentage of the then outstanding shares of New Preferred Stock shall have otherwise given prior written consent, the Company cannot, subject to certain exceptions enter into, create, incur, assume, guarantee or suffer to exist a specified dollar threshold of indebtedness (as defined in the Certificate of Designations), which shall not be less than $100,000.

Trading Market. There will be no established trading market for any of the New Preferred Stock