Second Leading Consumer Hemp/Cannabis Brand Adopts 22nd Century’s Turn-Key Contract Development and Manufacturing Plus Distribution (CDMO+D) Solution
Previously Announced Cookies Agreement Now Targeting More Than 200 Wholesale Distributors
Combined Cumulative Value of New License and Distribution Agreements Executed to Date Expected to Exceed $140 Million Over Contract Terms
BUFFALO, N.Y., May 02, 2023 (GLOBE NEWSWIRE) — 22nd Century Group, Inc. (Nasdaq: XXII), a leading biotechnology company dedicated to improving health with reduced nicotine tobacco, hemp/cannabis and hops advanced plant technologies, today announced its second exclusive license, manufacturing and distribution agreement (the “Agreement”) in the hemp/cannabis industry, signed with Old Pal, LLC, a widely recognized consumer hemp/cannabis company started in California and now operating in eight states.
“Old Pal is the second leading consumer hemp/cannabis brand to adopt 22nd Century’s innovative strategic license, manufacturing and distribution agreement. This model enables brands to focus on product development, customer engagement and marketing while we provide expansive access to mass market channels urgently seeking new, high-margin, high-velocity products to meet growing consumer demand,” said James A. Mish, Chief Executive Officer of 22nd Century.
Initially launched in California in 2018, Old Pal quickly gained recognition for its nostalgic branding. Today, the brand has expanded its reach and struck a chord with millions of daily consumers by paying homage to a simpler era, where hemp/cannabis was uncomplicated, neighbors knew each other by name, and the sense of community was significant. In addition, Old Pal’s continuously growing line of apparel, accessories, and home goods has firmly established it as a prominent cultural figure in the world of cannabis.
The exclusive license with 22nd Century covers Old Pal branded non-Delta-9 THC, hemp derived cannabinoid consumer products and accessories. Similar to 22nd Century’s first single-source integrated production, sales and distribution agreement in hemp/cannabis, signed with Cookies, the Old Pal agreement will leverage 22nd Century’s industry leading formulation, ingredient and manufacturing infrastructure plus the Company’s turn-key sales and distribution platform for alternative consumer products in a complete go-to-market solution.
Combined, the Company estimates that its agreements with Cookies and Old Pal represent more than $140 million in revenue opportunity with very attractive margins over the terms of the contracts. 22nd Century is now advancing its initial mass market retail efforts for these products across the United States, leveraging a network of more than 200 wholesale distributors. The Company continues to pursue additional exclusive license opportunities with industry brands interested in its innovative integrated solution.
About 22nd Century Group, Inc.
22nd Century Group, Inc. (Nasdaq: XXII) is a leading biotechnology company focused on utilizing advanced alkaloid plant technologies to improve health and wellness through tobacco harm reduction, reduced nicotine tobacco, hemp/cannabis and hops. With dozens of patents allowing it to control nicotine biosynthesis in the tobacco plant, the Company has developed proprietary reduced nicotine content (RNC) tobacco plants and cigarettes, which have become the cornerstone of the FDA’s Comprehensive Plan to address the widespread death and disease caused by smoking. The Company received the first and only FDA Modified Risk Tobacco Product (MRTP) authorization of a combustible cigarette in December 2021. In tobacco, hemp/cannabis and hop plants, 22nd Century uses modern plant breeding technologies, including genetic engineering, gene-editing, and molecular breeding to deliver solutions for the life science and consumer products industries by creating new, proprietary plants with optimized alkaloid and flavonoid profiles as well as improved yields and valuable agronomic traits.
Learn more about VLN® at tryvln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 9, 2023. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
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