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22nd Century Group Inc (NYSEMKT:XXII) Poised For A Breakout

22nd Century Group Inc (NYSEMKT:XXII) Poised For A Breakout
Written by
Richard Sandle
Published on
May 7, 2017
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The wave of cannabis legalization sweeping across the United States and Canada will inevitably lead to more people smoking cannabis, and probably cigarettes too. If done so irresponsibly, this could lead to higher incidences of addiction to both, which will ultimately lead to more occurrences of the harmful effects of smoking. 22nd Century Group Inc (NYSEMKT:XXII) is working on a solution to help mitigate addiction and harm from smoking.22nd Century Group, Inc is a plant biotechnology company focused on technology which allows it to increase or decrease the level of nicotine in tobacco plants, and the level of cannabinoids in cannabis plants through genetic engineering and plant breeding. The Company’s primary mission in tobacco is to reduce the harm caused by smoking. The Company’s primary mission in cannabis is to develop proprietary cannabis strains for important new medicines and agricultural crops.On May 1, 2017, 22nd Century Group, Inc. announced that the U.S. Food and Drug Administration (FDA) granted the company authorization to conduct a clinical trial to study the Company’s BRAND B, low tar-to-nicotine ratio cigarettes. Taking in less smoke as a result of making an adjustment to a higher nicotine cigarette in which nicotine is more readily available, is what the trial seeks to confirm. A Contract Research Organization with extensive experience in combustible cigarette exposure studies has been commissioned by the company to conduct the BRAND B trial this summer.According to the Centers for Disease Control and Prevention (CDC), 32% of smokers (nearly 12 million) have no desire to quit smoking. It is for these smokers, that the company is developing its BRAND B Low Tar-to-Nicotine ratio cigarettes. The company intends to submit a Modified Risk Tobacco Product (MRTP) application to the FDA for Brand B. Independent surveys have shown that even though 30-50% of American smokers are not committed to quitting, 90% of these smokers would be willing to try a potentially reduced exposure tobacco product. For this reason, 22nd Century believes the Company’s proprietary BRAND B product has enormous market potential. Dr. Michael Moynihan, Vice President of Research & Development at 22nd Century Group stated:

“Our initial clinical trial investigating the effects of BRAND B’s design-objective – the reduced delivery of smoke components, other than nicotine – is a measurable step forward in the development of our Company’s mission,”

On April 25, 2017, announced that James Vail, the Company’s Director of Business Development, will present the Company’s X-22 smoking cessation aid to high level executives from Chinese and international pharmaceutical companies at the BIOCHINA Partnering Forum in Zhuhai, China on May 31 – June 1, 2017. X-22 is a Very Low Nicotine tobacco-based botanical medical product under development as a prescription smoking cessation aid. Recent rule changes by the Chinese Food and Drug Administration (CFDA) will open an expedited pathway for X-22 in China. President and CEO of 22nd Century Group Henry Sicignano, III explained:

“With over 275 million adult smokers and nearly 1.5 million tobacco-related deaths each year in China, it is imperative that the Chinese government and Chinese smokers have access to X-22, which we believe is the world’s most effective smoking cessation aid. The advent of the new Chinese Food and Drug Administration rules will be extremely advantageous for 22nd Century; now we are accelerating our efforts to introduce X-22 to tens of millions of smokers across China.”

On April 20, 2017, 22nd Century Group, Inc. announced that it is building on its newly developed THC-free marijuana. The company is now developing important “enabling tools” that allow for the targeted manipulation of cannabinoid production. This technology is enabling the Company to create industrial hemp plants with altered levels of cannabinoids. This will lead to new medicines and improved agricultural uses.

XXII stock has been trading in a range with an upper resistance level at about $1.50 that goes all the way back to April of 2015. With each price dip to the lower end of the range, it sets a higher low before it bounces back up to the resistance level at $1.50. The resistance level has been tested on five separate occasions, but a break-out has not taken place. The next time the stock price approaches this resistance level may be a good buy signal. Current market capitalization stands at $118.81 million, on 90.7 million shares outstanding as of May 4, 2017. The financials for 22nd Century Group, Inc. indicate a consistent stream of revenues, and a strong balance sheet. The outcome of the clinical trials for the Company’s BRAND B product will no doubt have a significant impact on its stock price. XXII is definitely a stock to keep on the radar screen pending the outcome of the trials. We will be updating our subscribers as soon as we know more. For the latest updates on XXII, sign up below!Disclosure: We have no position in XXII and have not been compensated for this article.

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