Company: XXII
Filing Date: 2025-12-30
Form Type: DEF 14A
Source: 0001493152-25-029651
Chunk: 23

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-30
Form: DEF 14A
Chunk 23
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, each, an       
 “Alternate Conversion Amount”) 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 Alternate Conversion Date, and (ii) the Floor Price (the     
 “Alternate Conversion Price”).                                                                                                         |
| (ii) | Mechanics                                                                                                                              
 of Alternate Conversion. On any Alternate Conversion Date, the Holder may voluntarily convert any Alternate Conversion Amount pursuant 
 to Section 6(g)(i) (with “Alternate Conversion Price” replacing “Conversion Price” for all purposes hereunder                          
 with respect to such Alternate Conversion) by designating in the Conversion Notice delivered pursuant to this Section 6(g)(ii) that    
 the Holder is electing to use the Alternate Conversion Price for such conversion.”                                                     |

Section 7(h) of the Certificate of Designations provides as follows:

| “(h) | Voluntary                                                                                                                                
 Adjustment by Company. Subject to the rules and regulations of the principal Market, the Company may at any time any shares of Preferred 
 Stock remain outstanding, with the prior written consent of the Holders owning a majority of the shares of 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 of Directors, subject to the Floor Price.”                                                                                  |

A full copy of the Certificate of Designation and amendment thereto are attached as exhibits to the Company’s Current Reports on Form 8-K filed with the SEC on August 25, 2025 and December 17, 2025, respectively, which are incorporated herein by reference.

Reasons for Stockholder Approval

We agreed to hold a meeting of stockholders to approve the issuance of the shares of common stock at a price potentially below the Nasdaq Minimum Price on or prior to February 23, 2026. If stockholder approval is not obtained by February 23, 2026, the holders of the Series A Preferred may require us to redeem such shares at the stated value per share in cash.

Our common stock is listed on the Nasdaq Capital Market under the symbol “XXII,” and we are subject to the Nasdaq listing standards and rules. Under Rule 5635(d) of the Nasdaq Stock Market, stockholder approval is required in connection with a transaction, other than a public offering, at a price below the Minimum Price (as defined under Nasdaq rules) involving the sale, issuance or