22nd Century Group Faces Delisting from Nasdaq Due to Low Stock Price

22nd Century Group, Inc. (NASDAQ:XXII) is currently at risk of delisting from The Nasdaq Capital Market after failing to meet the minimum bid price requirement. The company received a notice from Nasdaq on December 16, 2024, stating that the closing bid price of its common stock had been at $0.10 or less for 10 consecutive trading days. This triggered a delisting action under Listing Rule 5810(c)(3)(A)(iii), also known as the Low Priced Stocks Rule.

Despite a previous Bid Price Cure Period, which ended January 13, 2025, allowing the company to regain compliance, Nasdaq has decided to proceed with the delisting process due to the Low Priced Stocks Rule. 22nd Century Group has the right to appeal this decision, which it intends to do before the Hearings Panel by December 23, 2024. This appeal will delay the delisting until a decision is made following the hearing.

In an attempt to address the listing deficiencies, the company completed a 1 for 135 reverse stock split on December 17, 2024. This action was aimed at increasing the trading price of the common stock. However, there are no guarantees that the Hearings Panel will rule in favor of the company or that it will successfully maintain compliance with Nasdaq’s listing rules.

Additionally, on December 16, 2024, 22nd Century Group filed a Certificate of Change to effect a 1-for-135 reverse stock split, which was approved by the stockholders. The reverse stock split was executed to swiftly restore compliance with Nasdaq’s listing standards.

Following the reverse stock split, the company’s shares of common stock continue to trade on Nasdaq under the symbol “XXII” but with a new CUSIP Number of 90137F400. Stockholders who held paper certificates may opt to send them to the company’s transfer agent to receive new share certificates reflecting the split terms.

The reverse stock split did not change the company’s authorized shares of common or preferred stock. Despite the adjustments made, each stockholder’s ownership interest and voting power remain relatively unaffected.

The company remains committed to resolving its listing issues and complying with Nasdaq’s requirements. Investors are advised to stay informed about the ongoing developments by contacting the designated transfer agent for further information and procedure details.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read 22nd Century Group’s 8K filing here.

About 22nd Century Group

22nd Century Group, Inc, a tobacco products company, engages in the sale and distribution of its own proprietary new reduced nicotine tobacco products. The company offers reduced nicotine content tobacco plants and very low nicotine combustible cigarette products. It also provides contract manufacturing services for conventional combustible tobacco products for third-party brands.