Company: XXII
Filing Date: 2025-06-10
Form Type: PRER14A
Source: 0001641172-25-014371
Chunk: 56

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: PRER14A
Chunk 56
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 $1.00 minimum bid price   
 as required by Nasdaq, or that we will otherwise meet the requirements of Nasdaq for continued 
 inclusion for trading on Nasdaq.                                                               |

The market price of our common stock will also be based on our performance and other factors, some of which are unrelated to the number of shares outstanding. If the Reverse Split is effected and the market price of our common stock declines, the percentage decline as an absolute number and as a percentage of our overall market capitalization may be greater than would occur in the absence of the Reverse Split. Furthermore, the liquidity of our common stock could be adversely affected by the reduced number of shares that would be outstanding after the Reverse Split.

| 37 |

Board Discretion to Implement the Reverse Split

If this proposal is approved by the Company’s stockholders, the Board will have the authority, in its sole determination without any further action necessary by the stockholders, to effect the Reverse Split during the Authorized Period at a ratio set forth in the above range, as determined by the Board. The Board may, in its sole determination, choose to not effect the Reverse Split. The Board believes that granting this discretionary authority provides the Board with maximum flexibility to react to prevailing market conditions and future changes to the market price of our common stock, and therefore better enables it to act in the best interests of the Company. In exercising its discretion, the Board may consider the following factors:

| ● | the                                                                                      
 historical trading price and trading volume of our common stock;                         |
| ● | the                                                                                      
 then-prevailing trading price and trading volume of our common stock and the anticipated 
 impact of the Reverse Split on the trading market for our common stock; and              |
| ● | the                                                                                      
 prevailing general market and economic conditions.                                       |

At the close of business on May 16, 2025, the Company had 11,507,622 shares of common stock issued and outstanding (including 3,901,815 shares held in abeyance). Following the effectiveness of the Reverse Split, if implemented, at a 1-for-2 ratio, the Company would have approximately 5,753,811 shares of common stock issued and outstanding (without giving effect to the treatment of fractional shares or any issuances of common stock after May 16, 2025) following the Reverse Split, and at a 1-for-100 ratio, the Company would have approximately 500,331 shares of common stock issued and outstanding (without giving effect to the treatment of fractional shares