22nd Century Group Inc (NYSEMKT:XXII)
22nd Century Group Inc (NYSEMKT:XXII) is a cutting edge plant biotechnology company with a novel mission – to develop a tobacco and cannabis plant with low levels of nicotine. Today the company released what many expected to be received as good news, but after a brief price gain, the shares eventually gave up their gains and closed unchanged. Over 5.3 million shares of XXII were traded which is over five times their listed 30-day, daily average volume of 966,000.
22nd Century Group Inc (NYSEMKT:XXII) released news today that it had enetered a collaborative agreement with The Dent Neurosciences Research Center (DNRC). DNCR will provide magnetic resonance imaging to image the brains of smokers as trial participants smoke Very Low Nicotine (VLN) cigarettes, developed and produced by 22nd Century Group Inc (NYSEMKT:XXII), or conventional cigarettes.
The trial is being carried out after clinical trials have produced results that suggest a significant physiological change occurs in a smokers brain as little as six days after switching to a VLN cigarette. The outcome of the imaging is hoped to identify changes in the brain that may correlate with nicotine addiction. A non-invasive marker of addiction status in brain activity could prove invaluable for future nicotine addiction studies.
Dr. Paul Rushton, 22nd Century’s Vice President for Plant Biotechnology stated, “The identification of changes in brain activity associated with smoking our VLN cigarettes compared to smoking regular cigarettes will be an important step forward.”
22nd Century Group Inc (NYSEMKT:XXII) has had ioncreasing annual sales for the past three years. In 2014 sales were reported at $0.50 million, followed by $8.5 million in 2015, and $12.3 million in 2016. Shareholders of XXII have, however, not seen any profits. Since 2015, XXII has had EPS losses. For 2016, the EPS loss was ($-0.15). Share dilution has been of, arguably, larger significance to XXII shareholders. In 2012 29.44 million shares were outstanding. That number has grown every year and in 2016 stood at 79.84 million.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.