Company: XXII
Filing Date: 2025-08-25
Form Type: 8-K
Source: 0001641172-25-025279
Chunk: 4

Company: 22nd Century Group, Inc.
Filing Date: 2025-08-25
Form: 8-K
Item: Item 5.03
Chunk 4
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 into Common Stock; in each instance, prior to and in preference to the Common
Stock or any other series of preferred stock.

Conversion

The
Series A Preferred Stock is convertible into Common Stock at any time at a 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,
subject to a floor price of $0.394 (the “ Series A Conversion Price”). The Company agreed to hold a meeting of stockholders
within 90 days of closing to approve the issuance of the shares of Common Stock upon such anti-dilution adjustment. If stockholder approval
is not obtained within 180 days, the holders may require the Company to redeem the Series A Preferred Stock at the Stated Value per share.

Conversion
at the Option of the Holder

The
Series A Preferred Stock is convertible at the then-effective Series A Conversion Price at the option of the holder at any time and from
time to time.

Mandatory
Conversion at the Option of the Company

If,
at any time from and after issuance, (i) the closing price of the Common Stock equals or exceeds 200% of the then Conversion Price for
10 consecutive trading days and (ii) the daily dollar trading volume for the Common Stock exceeds $1,000,000 per day during such period,
the Company may require the the holders to convert the Series A Preferred Stock into Common Stock at the Series A Conversion Price.

Beneficial
Ownership Limitation

The
Series A 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 Series A Preferred Stock will, as holders of Series A Preferred Stock, have any preemptive rights to purchase or subscribe
for Common Stock or any of our other securities.

Redemption

At
any time one year after the issuance date, the Company may redeem all or a portion of the shares of Series A Preferred Stock
outstanding by delivering notice