Revenues Down, Loss Up for 22nd Century

22nd Century Group reported net revenues of $17.81 million in the three months that ended Sept. 30, 2023, down from $19.38 million in the comparable 2022 quarter. Net loss was $72.72 million against a net loss of $13.1 million in the third quarter of 2022.

“In the third quarter, our VLN footprint expanded from approximately 1,100 stores in 14 states as of June 30, 2023, to over 4,550 stores spanning 19 states. This includes the recent expansion of more than 400 stores in Florida with a leading national convenience store chain that has prior experience in VLN sales across other states,” said 22nd Century Group CEO John Miller in a statement.

“We also initiated sales in our first nationwide drug store chain, thereby conducting sales trials in five states and diversifying the range of channels through which our products are accessible. However, our dynamic store count growth did not translate into immediate revenue. Sales of VLN were modest in the quarter as the brand is still largely unknown to our target market, and our marketing capabilities are limited given our current financial condition.”

On Sept. 5, 2023, the company announced its intent to explore strategic alternatives in an effort to maximize shareholder value. While the initial focus was primarily on 22nd Century’s tobacco portfolio, the company subsequently received indications of interest regarding its other assets in addition to tobacco.

In October, the company reduced the outstanding principal of its senior secured credit facility from approximately $22.1 million to approximately $14 million.