22nd Century secures $11.7M in gross proceeds from direct financing

22nd Century entered into definitive agreements with certain investors on July 19 for the purchase and sale of common stock and warrants in a registered direct offering priced above market under Nasdaq rules on such date. The transaction closed on July 21. Gross proceeds to the Company from the registered direct offering were $11.7 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for accelerating the consumer use data for VLN among adult smokers, accretive structural changes to streamline operations and for general corporate purposes. The Special Equities Group, a division of Dawson James Securities Inc., acted as the sole placement agent for the above disclosed registered direct transaction. As part of the transaction, the Company agreed to issue to the investors 4.37 million shares of common stock at $2.67 and warrants to purchase up to 8.75 million shares of common stock at an exercise price of $2.42 per share and are immediately exercisable.