22nd Century Group Inc (NYSEAMERICAN: XXII) entered a definitive agreement that will support its restructuring moves. It shifts its focus to Panacea Life Sciences, Inc, and hopes to undertake several strategic investments moves as provided by the agreement. It considers the latest move to be a part of its grand scheme to expand its strategic partnership network that has been ongoing for a long time.
The terms and provisions of the agreement
22nd Century is ready to let go of its existing $7 million note in Panacea, and it will get the Needle Rock Farms in return. Needle Rock Farms is currently valued at $2.2 million and lies in a prime Colorado hemp/cannabis growing location.
The agreement also entitles 22nd Century to a $4.3 million note and $500,000 in Panacea equity. In addition, Panacea agrees to the deal because it will retain some particular assets under its nameplate of PANA Organic Botanicals.
The other agreement’s clause has to do with converting about $7.0 million in Panacea Life Sciences Series B Preferred Stock under 22nd Century’s name getting converted to 91 million shares of Exactus Inc (OTCMKTS: EXDI). The agreement is geared towards the transformation of Panacea into a publicly-traded entity.
Mish speaks out
The chief executive officer of 22nd Century Group, James A. Mish, opined, “This exchange is an exciting leap forward for 22nd Century as we advance our upstream value chain strategy to bring highly disruptive hemp and cannabis plant lines to market. It is also highly attractive to 22nd Century on a financial basis, creating immediate value, asset-backed future value and potential future liquidity from an existing investment.”
Mish describes Rock Farms as a top-class farming operation that stands in a fast-growing location. He also discloses that they will focus on retaining access to Panacea’s extraction, purification, and testing equipment. The official believes that the move is set to benefit their customers.