Company: XXII
Filing Date: 2025-12-19
Form Type: PRE 14A
Source: 0001493152-25-028573
Chunk: 22

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-19
Form: PRE 14A
Chunk 22
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 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 potential issuance by the Company of common stock (or securities convertible into or exercisable for common stock), which equals 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance. The sections of the Certificate of Designations above could result in the potential issuance of more than 19.99% of our outstanding common stock at below the Minimum Price under Nasdaq rules without approval of our stockholders.

Possible Effects of the Proposal

If the stockholders do not approve this Proposal 2, then the Series A Preferred conversion price will not change. Additionally, the failure to obtain stockholder approval may discourage future investors from engaging in future financings with us. If these consequences occur, we may have difficulty finding alternative sources of capital to fund our operations in the future on terms favorable to us or at all. We can provide no assurance that we would be successful in raising funds pursuant to additional equity or debt financings. In