Debra BorchardtAugust 21, 2018
Asset manager BlackRock Inc. is now the biggest institutional holder of 22nd Century Group Inc. (XXII), a company that claims to be specializing in cannabis, but is really only a producer of tobacco products.
BlackRock Inc. filed a 13F-HR form disclosing ownership of 7,361,866 shares of 22nd Century with total holdings valued at $18,110,000 USD as of June 30, 2018. BlackRock Inc. had filed a previous 13F-HR on May 09, 2018 disclosing 2,809,955 shares of 22nd Century Group, Inc. at a value of $6,602,000 USD. This represents a change in shares of 161.99 percent and a change in value of 174% during the quarter.
22nd Century Group Top Holders
According to 22nd Century Group, institutional investors currently hold around $61 million or 24.3% in XXII stock. The top holders include Blackrock Inc. which owns $17.74 million in 22nd Century Group and represents roughly 6.42% of the company’s market cap and approximately 29.09% of the institutional ownership. The second largest owner, Vanguard Group Inc, owns 5,285,583 shares of the stock which are valued at $12.74 million. The third largest holder is Etf Managers Group, Llc, which currently holds $6.88 million worth of this stock and that ownership represents nearly 2.49% of its market capitalization.
22nd Century Group Sells Only Tobacco
22nd Century plans to mass produce a very low nicotine tobacco that will be available in cigarettes and smoking cessation products. The company claims to be the only company that holds the research and application patents worldwide for low nicotine tobacco, although these products have been in existence for some time such as the Next cigarette from Philip Morris in 1989 and the Quest cigarette from Vector Tobacco in 2003.
XXII says it owns exclusive rights to the patents to that will reduce exposure to smoke toxins. A company statement said that “The tobacco will address unmet needs of smokers: for those people that want to quit, as an innovative smoking cessation aid, and for those who continue to smoke, a product that has reduced levels of nicotine.”
At this time 22nd Century Group only sells high-level nicotine cigarettes call Red Sun and normal level nicotine cigarettes called Moonlight (sold in the Asian markets). There is a low nicotine cigarette product called Magic.
22nd Century says it holds 4 patents that give the tobacco company a new monopoly on the entire scientific concept, process, and method as they relate to numerous plants. It says it can “produce a THC free hemp that is void of the hallucinogenic properties that has made cannabis illegal in most states.”
Anandia Laboratories Investment
22nd Century had invested in research partner, Anandia Laboratories in Canada, but that cannabis company has agreed to be acquired by Aurora Cannabis Inc. (ACBFF) 22nd Century will now receive shares of Aurora Cannabis in return for its approximately 14.8% equity ownership of Anandia. So, in a way 22nd Century Group will have some investment into a real cannabis company by owning shares of Aurora Cannabis.
