22nd Century Group Inc. (NYSEAMERICAN: XXII) shares jumped 13.17% after the company announced the signing of a definitive agreement with an institutional investor to sell ten million common shares at $4 per share for total proceeds of $40 million in a registered direct offering. The company expects the offering to close on or about June 9, 2021, subject to meeting customary closing conditions.
22nd Century finalizes direct offering
Kames A. Mish, 22nd Century Group’s CEO, said that as a result of the straight common equity financing with one of the company’s long-term institutional investors, they can now accelerate their ongoing strategic objectives across the company’s plant franchises. The plant-based biotech company will use proceeds from the direct offering to support strategic objectives across its plant franchises.
More importantly, the net proceeds will be used for capital expenditure, commercialization of the company’s product portfolio, research and development expenses, procurement and development of intellectual property rights, working capital, and corporate roles. The company didn’t reveal the strategic investor’s identity and will offer details when it releases its Q2 2021 results in August.
Already a registration statement in Form S-3 connected to common shares of the company’s stock has been filed with the SE and is effective. This offering was made through a prospectus supplement to the prospectus in the registration statement. Copies of the final prospectus supplement are available on the SEC website.
22nd Century secures strategic partnerships
22nd Century also announced strategic partnerships with two alkaloid specialist plant breaded to enhance upstream capabilities scope. The company closed a collaboration deal with Auraor Cannabis to implement shared global biosynthesis IP rights and explore commercial development opportunities as well as commercialization of key patented tech expected in 2H 2021.