22nd Century enters license, distribution agreement with Old Pal

22nd Century Group announced its second exclusive license, manufacturing and distribution 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. 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.