Company: XXII
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001493152-25-020754
Chunk: 14

Company: 22nd Century Group, Inc.
Filing Date: 2025-11-04
Form: 424B5
Chunk 14
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as we deem appropriate. Once we have so instructed the sales agent, unless it declines to accept the terms of the notice, the Sales Agent
has agreed to use its commercially reasonable efforts consistent with its normal trading and sales practices to sell such shares up to
the amount specified on such terms. The obligations of the Sales Agent under the Sales Agreement to sell our common stock is subject
to a number of conditions that we must meet.

We will pay the Sales Agent a commission equal
to 3% of the gross proceeds from the sale of common stock offered hereby. In addition, we have agreed to reimburse certain
expenses of the Sales Agent in an amount not to exceed an aggregate of up to $100,000 in connection with the establishment of
this “at the market offering.” Additionally, pursuant to the terms of the Sales Agreement, we agreed to reimburse the Sales
Agent for the documented fees and disbursements of its legal counsel reasonably incurred in connection with the Sales Agent’s
ongoing diligence arising from the transactions contemplated by the Sales Agreement in an amount not to exceed $10,000 for such
periodic update, if any, during any financial quarter.

In accordance with Financial Industry Regulatory
Authority, Inc. Rule 5110, these fees and reimbursed expenses are deemed sales compensation in connection with this offering.
We estimate that the total expenses for the offering, excluding compensation payable to the Sales Agent under the
terms of the Sales Agreement, will be approximately $150,000.

Settlement for sales of common stock will generally occur on the first trading day following the date on which any sales are made, or on some other date that is agreed upon by us and the sales agent in connection with a particular transaction, in return for payment of the net proceeds to us. There is no arrangement for funds to be received in an escrow, trust or similar arrangement. We will report at least quarterly the number of shares of common stock sold through the Sales Agent under the Sales Agreement and the net proceeds to us in connection with the sales of common stock.

In connection with the sale of shares of our common stock on our behalf, the Sales Agent will be deemed to be an “underwriter” within the meaning of the Securities Act and the compensation of the Sales Agent will be deemed to be underwriting commissions or discounts. We have agreed to provide indemnification and contribution to the Sales Agent against certain civil liabilities, including liabilities under the Securities Act. We have also agreed to reimburse the Sales Agent for certain other specified expenses.

The offering of