Tobacco and cannabis company 22nd Century Group, Inc. (Nasdaq: XXII) reported that John Miller, who leads the tobacco business unit, has been appointed as interim Chief Executive Officer. James A. Mish, who has served as CEO since June 2020, will continue to serve as a member of the Board of Directors.
In addition to the leadership change, the company said it had secured an additional $11.7 million in gross proceeds from registered direct financing and announced the start of an estimated $15 million annualized cost reduction initiative. 22nd Century also appointed Wall Street veteran Andrew Arno to its Board of Directors as an independent director.
“I look forward to continuing to advance our mission of innovative plant technologies tied to tobacco harm reduction and new consumer-focused health and wellness products,” said Miller. “VLN represents the most unique and innovative approach to harm reduction in years, providing adult smokers with a truly unique, clinically studied solution to reducing their smoking habit. Likewise, our work in the hemp/cannabis business is bringing forward new products sought by consumers while applying the consistent standards, reliable manufacturing processes, and national distribution support needed for brands to effectively scale in these growing end markets.”
The company also announced last week that it had regained compliance with the NASDAQ marketplace on the stock selling price. At the beginning of July, 22nd Century Group engaged in a 1-for-15 reverse stock split in an attempt to push the stock price higher.
At the time Board Chair Nora Sullivan said, “As a transformative plant science company, being listed on the Nasdaq Stock Market places 22nd Century among the top innovation driven companies of the world. The board decided to take action now to resolve our compliance with the Nasdaq listing standards, providing investors with greater assurance around this important asset even as we continue to advance our mission focused on plant biotechnology and health improvement.”
Following the reverse stock split, the shares received a new CUSIP number, 90137F202.