Company: XXII
Filing Date: 2025-06-10
Form Type: DEF 14A
Source: 0001641172-25-014543
Chunk: 77

Company: 22nd Century Group, Inc.
Filing Date: 2025-06-10
Form: DEF 14A
Chunk 77
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) consecutive Nasdaq trading days immediately preceding the date on which the Conversion Price shall be reset (the “Reset Conversion Price”); provided, however, that Reset Conversion Price shall in no event be greater than the Conversion Price (as adjusted in accordance with the terms of the Debentures) in effect on the date of the October 2024 Letter Agreement, which is $0.7458.

Under the terms of the October 2024 Letter Agreement, as approved by the stockholders at the December 6, 2024 special meeting of stockholders, the Company was granted approval to reset the Conversion Price (as defined in the Debentures) currently in effect, at the discretion of the Board of Directors and on a one time basis. On January 13, 2025, the Board of Directors approved the reset of the Conversion Price down to $6.04 per share.

On May 22, 2025, the Company entered into that certain Letter Agreement (“May 2025 Letter Agreement”) with the Holders and Agent whereby the Company was granted the right, on a one-time basis, to reset the Conversion Price in effect to an amount equal to the average of the daily volume weighted average prices (VWAPs) for each of the five (5) consecutive Nasdaq trading days immediately preceding the date on which the Conversion Price shall be reset (the “Reset Conversion Price”); provided, however, that Reset Conversion Price shall in no event be greater than the Conversion Price (as adjusted in accordance with the terms of the Debentures) in effect on the date of the May 2025 Letter Agreement, which is $6.04.

The reduction in the Conversion Price is subject to the approval of the Company’s stockholders and the Company is required pursuant to the May 2025 Letter Agreement to seek stockholder approval by August 15, 2025.

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The current outstanding principal balance of the Debentures as of June 2, 2025 is approximately $3.8 million. If this Proposal 9 is approved, the current outstanding amount of the Debentures could be converted into common stock of the Company as demonstrated below, assuming a conversion price of (i) the average of the daily VWAPs for each of the five (5) consecutive Nasdaq trading days immediately preceding June 2, 2025, equal to approximately $0.758, and then separately (ii) $0.50:

| Common Stock Ownership after full conversion        
 of Deb