Company: XXII
Filing Date: 2025-08-25
Form Type: 8-K
Source: 0001641172-25-025279
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Company: 22nd Century Group, Inc.
Filing Date: 2025-08-25
Form: 8-K
Item: Item 1.01
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Item      Entry                                  

On
August 22, 2025, 22nd Century Group, Inc. (the “ Company”) and certain investors (the “ Investors”) entered into
a securities purchase agreement (the “ Securities Purchase Agreement”) with respect to the offer and sale of $10.65 million
of shares of Series A Convertible Preferred Stock, stated value $1,000 per share (the “ Series A Preferred Stock”), initially
convertible into an aggregate of 4,863,013 shares of the Company’s common stock (the “ Common Stock”) at a initial
conversion price of $2.19 (subject to adjustment in certain circumstances following stockholder approval and with such adjustments
subject to a floor price of $0.394) and warrants (the “ Warrants”) to purchase shares of Common Stock pursuant to a
registered direct offering (collectively, the “ Offering”). The Investors purchased approximately $10.65 million of
shares of Series A Preferred Stock and Warrants. The Warrants are immediately exercisable at an exercise price of $1.97 per share
of Common Stock and expire on the date that is five (5) years after issuance. The Offering is expected to close on August 26, 2025, subject
to the satisfaction of customary closing conditions. For a description of the terms of the Series A Preferred Stock, see Item 5.03 below.

The
Securities Purchase Agreement provides that, subject to certain exceptions, until 45 days after the closing of the Offering, neither
the Company nor any of its subsidiaries will issue, enter into any agreement to issue or announce the issuance or proposed issuance of
any shares of Common Stock or Common Stock equivalents. The Securities Purchase Agreement also provides that certain of the Investors
in the Offering have a right of participation in future equity or equity linked offerings by the Company for 9 months after no shares
of Series A Preferred Stock are outstanding in an amount equal to 50% of such subsequent financing.

The
Securities Purchase Agreement provides that, subject to certain exceptions, until no shares of Series A Preferred Stock are outstanding,
the Company will be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries
of common stock or common stock equivalents (or a combination of units thereof) involving a Variable Rate Transaction (as defined in
the Securities Purchase Agreement).

The
net proceeds to the Company from the Offering, after deducting the fees of Dawson James Securities, Inc.