Company: XXII
Filing Date: 2025-12-19
Form Type: PRE 14A
Source: 0001493152-25-028573
Chunk: 27

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-19
Form: PRE 14A
Chunk 27
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 or (e) enter into any agreement to do any of the foregoing.

Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a “Liquidation”), the then holders of the New Preferred Stock are entitled to receive out of the assets available for distribution to stockholders of the Company an amount equal to either (i) 100% of the stated value or (ii) the amount the holder would receive if the New Preferred Stock had been converted into Common Stock; in each instance, prior to and in preference to the Common Stock or any other series of preferred stock, but pari passu with the Series A Preferred Stock.

Conversion. The New Preferred Stock will be convertible into Common Stock at any time at a conversion price equal to the Nasdaq Minimum Price at the time an agreement is executed, subject to adjustment for certain anti-dilution provisions set forth in the Series A Certificate of Designation, subject to a floor price of 20% of the Nasdaq Minimum Price at the time an agreement is executed (the “Conversion Price”).

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Conversion at the Option of the Holder. The New Preferred Stock will be convertible at the then-effective 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 a certain percentage above the then Conversion Price for a number of consecutive trading days and (ii) the daily dollar trading volume for the Common Stock exceeds a per day dollar threshold during such period, the Company may require the holders to convert the New Preferred Stock into Common Stock at the Conversion Price.

Voluntary Adjustment. Subject to the rules and regulations of the Nasdaq Stock Market, the Company may at any time any shares of New Preferred Stock remain outstanding, with the prior written consent of the holders owning a majority of the shares of New 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, subject to the Floor Price.

Alternate Conversion.At a holder’s option, it may convert all, or any part of, the New Preferred Stock into shares of Common Stock at a Conversion Price equal to the higher of (i) 85% of the lowest daily VWAP in the twenty (20) trading days prior to the applicable conversion date, and (ii) the Floor Price .

Beneficial