Company: XXII
Filing Date: 2025-12-19
Form Type: PRE 14A
Source: 0001493152-25-028573
Chunk: 26

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-19
Form: PRE 14A
Chunk 26
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 the Minimum Price under Nasdaq rules.

General

We are seeking approval for a potential future offering of New Preferred Stock and New Warrants under Nasdaq rules (the “Proposed Future Offering”). We would seek approval to raise up to $20 million of gross proceeds from the sale of New Preferred Stock and New Warrants to purchase up to $20 million in gross proceeds of our common stock on the terms below. The Proposed Future Offering must be completed on or before the date that is three months following the date of this Special Meeting of Stockholders, with substantially the same investors as the registered direct offering for the existing Series A Preferred and will have the following terms:

Terms of Proposed New Preferred Stock

The Proposed Future Offering of New Preferred Stock will be substantially similar to the existing Series A Preferred Stock, as follows:

Number of Shares. The Company will file a Certificate of Designation of Preferences, Rights and Limitations with the Secretary of State of the State of Nevada designating up to 20,000 shares out of the authorized but unissued shares of its preferred stock as New Preferred Stock with a stated value of $1,000 per share. The purchase price will be $1,000 per share.

Dividends.The holders of New Preferred Stock will be entitled to dividends when and as declared by the board of directors of the Company (the “Board”), from time to time, in its sole discretion, which dividends will be paid by the Company out of funds legally available therefor, payable, subject to the conditions and other terms of the Certificate of Designations, in cash, in securities of the Corporation or using assets as determined by the Board on the stated value of such New Preferred Stock.

Voting Rights. The shares of New Preferred Stock have no voting rights, except to the extent required by the applicable law. As long as any shares of New Preferred Stock are outstanding, the Company may not, without the approval of a majority of the then outstanding shares of New Preferred Stock (a) alter or change the powers, preferences or rights given to the New Preferred Stock, (b) alter or amend the Certificate of Incorporation or the bylaws of the Company in such a manner so as to materially adversely affect any rights given to the New Preferred Stock, (c) authorize or create any class of stock ranking as to dividends, redemption or distribution of assets upon a Liquidation (as defined below) senior to, or otherwise pari passu with, the New Preferred Stock, (d) increase the number of authorized shares of New Preferred Stock,