Agriculture biotechnology firm 22nd Century Group announced a registered direct offering of shares to raise expected gross proceeds of $35 million.
The offering to institutional investors will sell more than 17 million 22nd Century shares for $2.05 per share and issue warrants exercisable to purchase 17 million more shares at the same price for five years, 22nd Century said in a news release.
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Buffalo, New York-based 22nd Century acquired hemp-derived cannabinoids company GVB Biopharma in May.
At the time, 22nd Century said GVB had “an estimated 15% share of the hemp-derived active ingredients market.”
However, proceeds from the new share offering will not be used to fund GVB or to repay its debt, according to the release.
Instead, the proceeds will be used “for expansion and acceleration of the launch” of 22nd Century’s reduced-nicotine cigarettes, among other purposes.
Shares of 22nd Century trade as XXII on the
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