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

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-30
Form: DEF 14A
Chunk 30
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, and we do not expect a market to develop. We do not intend to apply for a listing for any of the New Preferred Stock on any securities exchange or other nationally recognized trading system. Without an active trading market, the liquidity of the New Preferred Stock will be limited.

Terms of Proposed New Warrants

The Proposed Future Offering of New Preferred Stock will include New Warrants that are substantially similar to the existing warrants issued with the Series A Preferred Stock, as follows:

The New Warrants would be exercisable at an exercise price equal to the Nasdaq Minimum Price when a binding agreement is executed and would expire on the date that is five (5) years after issuance. The number of Warrants issued would equal the total subscription amount for the New Preferred Stock divided by the exercise price. The exercise price of the New Warrants would be subject to adjustment in certain circumstances, including upon any subsequent equity sales at a price per share lower than the then effective exercise price of such New Warrants, then such exercise price shall be lowered to such price at which the shares were offered.

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A holder of New Warrants will have the right to exercise the common warrants on a “cashless” basis if there is no effective registration statement registering the resale of the warrant shares. Subject to limited exceptions, a holder of New Warrants will not have the right to exercise any portion of its New Warrants if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or 9.99% at the election of the holder prior to the date of issuance) of the number of shares of our common stock outstanding immediately after giving effect to such exercise, provided that the holder may increase or decrease the beneficial ownership limitation up to 9.99%. Any increase in the beneficial ownership limitation shall not be effective until 61 days following notice of such change to us. In addition, in certain circumstances, upon a fundamental transaction, the holder will have the right to require us to repurchase its New Warrants at the Black Scholes value. Except as otherwise provided in the New Warrants or by virtue of such holder’s ownership of shares of our common stock, the holders of the New Warrants will not have the rights or privileges of holders of our common stock, including any voting rights, until they exercise their New Warrants.

Reasons for Stockholder Approval

Our common stock is listed on the Nasdaq Capital Market under the symbol “XXII,” and we are subject to the