Why XXII Could Go To $11.50 In 2018
Joseph Pandolfino founded the 22nd Century Group, Inc. (NYSE: XXII) in 1998 for the purpose of funding a research and development collaboration at North Carolina State University related to biosynthesis of nicotine in tobacco plants. The goal was to determine if a nicotine-free cigarette could be developed as a more successful option for consumers who are trying to quit smoking. Over many years of research, collaboration, trial and error, XXII has become a world-renowned plant biotechnology company in the business of tobacco harm reduction with the technology to isolate and genetically engineer nicotine in tobacco plants for plant breeding. The company has developed and delivered smoking cessation aids and modified the risk of tobacco products. In recent years, XXII has branched out with investments in the cannabis and industrial hemp industries with a research and development focus.
Among the company’s products are MAGIC and RED SUN cigarettes, both regular and menthol. Additionally offered are government research cigarettes known as SPECTRUM. XXII. XXII is in the process of developing a tobacco-based botanical smoking cessation product, called X-22, which will require a prescription. Other products under development are modified risk BRAND A cigarettes which contain 95% less nicotine than conventional cigarettes as well as BRAND B cigarettes with contain a significantly lower amount of tar per milligram of nicotine.
Headquartered in New York, XXII currently partners strategically with Anandia Laboratories, Inc. to develop THC-free industrial hemp plants and engages in scientific collaboration with the University of Virginia.
Recent Developments for XXII
The strategic partnership between XXII and Anandia Labs has produced the world’s first zero THC hemp plants; this is a critical feat considering the presence of THC in hemp has been the industry’s number one challenge. Crops containing more than 0.3% THC, under federal law, must be destroyed, which has often translated into huge losses for farmers. The creation of THC-free hemp plants offers farmers and the industry a viable solution and protection from risk which opens doors for greater success.
XXII’s wholly-owned subsidiary, Botanical Genetics LLC, will invest an additional $800,000 in Anandia Labs to further the existing hemp research. This new investment will focus on product development with the goal of creating the next generation of industrial hemp plants.
With regards to continued work with nicotine and the tobacco industry, XXII has emerged as the sole player in the future of reduced risk cigarettes. Following the FDA’s major announcement on July 28, 2017, which stated it would begin the process of replacing conventional cigarettes with counterparts containing very low levels of nicotine, XXII has been the only company with the technology to accommodate this national shift.
Between research and development in both the hemp and tobacco industries as well as the production of effective and innovative products, XXII seems poised to continue affecting positive change and to reap significant revenue in the years to come.