22nd Century Group has initiated a process to evaluate strategic alternatives with respect to the company’s tobacco assets. The process will include consideration of a range of strategic, operational and financial transactions and alternatives, such as business combinations, asset sales, licensing agreements, alternate financing strategies and other options.
“We believe the current market capitalization of the company does not appropriately reflect the value of our assets or their long-term potential. After extensive discussion, our board has determined that the best way to maximize value for shareholders is to comprehensively evaluate the company’s strategic alternatives,” said Nora Sullivan, chair of the board of 22nd Century, in a statement.
“Through the strategic alternatives process, we hope to identify ways to monetize the value or more effectively expand the market reach of our tobacco portfolio, including our innovative VLN tobacco harm reduction products, the first and only combustible tobacco product to receive a modified-risk tobacco product designation from the U.S. Food and Drug Administration.”
The company has engaged TD Cowen as advisors in its review of strategic alternatives. There is no assurance that the strategic alternatives process will result in the approval or completion of any specific transaction or outcome.
The company has not established a timeline for completion of the review process and does not intend to disclose developments unless and until its board of directors approves a specific transaction, concludes the review or determines that further disclosure is appropriate or is required.