22nd Century acquires RX Pharmatech for upfront payment of $650,000

22nd Century Group announced the acquisition of privately held RX Pharmatech, a United Kingdom distributor of cannabinoids with 1,276 novel food applications with the U.K. Food Standards Agency. Terms of the agreement include an up-front payment of $650,000 in cash and stock and a three-year equity earn-out based on revenue milestones. RXP’s products include CBD isolate and numerous variations of finished products like gummies, oils, drops, candies, tinctures, sprays, capsules and others. The U.K. is not accepting new novel food applications for cannabinoid products at this time and denied tens of thousands of product applications earlier in 2022 during the FSA’s first round of screening. This market dynamic will allow 22nd Century to open new opportunities to land highly accretive contracts with multinationals for quality CBD and hemp-derived consumer products dependent on the novel food licenses.