Company: XXII
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001641172-25-014543
Chunk: 76

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 76
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 approved and recommends to the stockholders a proposal to amend the Conversion Price (defined below) in the Debentures dated March 3, 2023, as amended on December 22, 2023, pursuant to Rule 5635(b) for a potential change in control of the Company, and 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.

Overview

On March 3, 2023, the Company entered into that certain Securities Purchase Agreement (the “SPA”) with JGB Partners, LP (“JGB Partners”), JGB Capital, LP (“JGB Capital”) and JGB Capital Offshore Ltd. (“JGB Offshore” and collectively with JGB Partners and JGB Capital, the “Holders”) and JGB Collateral, LLC, as collateral agent for the Holders (the “Agent”). Pursuant to the SPA, the Holders purchased (i) 7% Original Issue Discount Senior Secured Debentures (the “Debentures”) of the Company and (ii) warrants to purchase up to 153 shares (after the redemption of 78 warrants) shares of the Company’s common stock, par value $0.00001 per share.

On December 22, 2023, the Company entered into an Amendment Agreement (the “JGB Amendment”) pursuant to which the Company agreed to amend the Debentures to allow the Holders to voluntarily convert the Debentures, in whole or in part, into shares of the Company’s common stock (“Voluntary Conversion Option”) at a conversion price equal to the lower of (x) $2160.00 per share and (y) the closing sale price of the Company’s common stock on June 29, 2024 (the “Conversion Price”), along with other concessions. The Conversion Price was set at $100.683 on June 29, 2024 after the Voluntary Conversion Option was approved by the Company’s stockholders on June 28, 2024.

On October 9, 2024, the Company entered into that certain Letter Agreement (“October 2024 Letter Agreement”) with the Holders and Agent whereby the Company was granted the right, on a one-time basis, to reset the Conversion Price in effect to an amount equal to the average of the daily volume weighted average prices (VWAPs) for each of the five (5