Company: XXII
Filing Date: 2025-08-26
Form Type: 424B5
Source: 0001641172-25-025541
Chunk: 21

Company: 22nd Century Group, Inc.
Filing Date: 2025-08-26
Form: 424B5
Chunk 21
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 of Designation, subject to a floor price of $0.394 (the “Series A Conversion Price”). The Company agreed to hold a meeting of stockholders within 90 days of closing to approve the issuance of the shares of Common Stock upon such anti-dilution adjustment and to hold subsequent meetings every 120 days thereafter if the Stockholder Approval is not obtained at the initial meeting. If the Stockholder Approval is not obtained within 180 days, the holders may require the Company to redeem the Series A Preferred Stock at the Stated Value per share of Series A Preferred Stock being redeemed.

Conversion at the Option of the Holder

The Series A Preferred Stock is convertible at the then-effective Series A Conversion Price at the option of the holder at any time and from time to time.

Mandatory Conversion at the Option of the Company

If, at any time from and after issuance, (i) the closing price of the Common Stock equals or exceeds 200% of the then Conversion Price for 10 consecutive trading days and (ii) the daily dollar trading volume for the Common Stock exceeds $1,000,000 per day during such period, the Company may require the holders to convert the Series A Preferred Stock into Common Stock at the conversion price.

Beneficial Ownership Limitation

The Series A Preferred Stock cannot be converted to Common Stock if the holder and its affiliates would beneficially own more than 4.99% (or 9.99% at the election of the holder) of the outstanding Common Stock. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99% upon notice to us, provided that any increase in this limitation will not be effective until 61 days after such notice from the holder to us and such increase or decrease will apply only to the holder providing such notice.

Preemptive Rights

No holders of Series A Preferred Stock will, as holders of Series A Preferred Stock, have any preemptive rights to purchase or subscribe for Common Stock or any of our other securities.

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Redemption

At any time following the one year anniversary of the original issuance date, the Company may redeem all or a portion of the shares of Series A Preferred Stock outstanding by delivering notice to the holders of the Series A Preferred Stock at least 30 calendar days prior equal to 110% of the Stated Value per share of Series A Preferred Stock being redeemed.

Negative Covenants

As long as any Series A Preferred Stock is outstanding, unless the holders of more than