Company: XXII
Filing Date: 2025-12-30
Form Type: DEF 14A
Source: 0001493152-25-029651
Chunk: 28

Company: 22nd Century Group, Inc.
Filing Date: 2025-12-30
Form: DEF 14A
Chunk 28
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, in securities of the Corporation or using assets as determined by the Board on the stated value of such New Preferred Stock.

Voting Rights. The shares of New Preferred Stock have no voting rights, except to the extent required by the applicable law. As long as any shares of New Preferred Stock are outstanding, the Company may not, without the approval of a majority of the then outstanding shares of New Preferred Stock (a) alter or change the powers, preferences or rights given to the New Preferred Stock, (b) alter or amend the Certificate of Incorporation or the bylaws of the Company in such a manner so as to materially adversely affect any rights given to the New Preferred Stock, (c) authorize or create any class of stock ranking as to dividends, redemption or distribution of assets upon a Liquidation (as defined below) senior to, or otherwise pari passu with, the New Preferred Stock, (d) increase the number of authorized shares of New Preferred Stock, 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