22nd Century Group Inc (NASDAQ:XXII) saw its stock jump 14.8% in premarket trading Friday after the company confirmed it has fully repaid the remaining $3.9 million of senior secured debt.
The repayment follows the completion of the company’s Series A convertible preferred stock offering, which helped eliminate one of the final legacy obligations from its prior structure. The company reported that this action boosted adjusted pro forma net tangible book value by approximately $9.1 million, or around $1.05 per share.
“We are pleased to remove one of the last legacy liabilities from the previous 22nd Century organization,” said Larry Firestone, CEO. “This is a huge step forward for the company, having now eliminated greater than $20 million in senior secured and subordinated debt since I joined the team.”
22nd Century, known for its reduced nicotine content products, said it now plans to focus resources on growth initiatives, including margin expansion from branded products that began shipping in Q3 2025.
The company also intends to use part of its capital to expand its very low nicotine (VLN) tobacco leaf inventory in Q4 2025. Current reserves allow production of over one million cartons of VLN combustible products.
22nd Century Group stock price
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