22nd Signs Contract Manufacturing Deal
22nd Century Group has signed a significant new contract manufacturing agreement for the production of branded conventional cigarette products. The contract, which will commence revenue generation in the second quarter of 2024, is expected to increase carton production volumes at 22nd Century’s manufacturing facility by more than 20 percent when fully implemented.
“We are excited to announce this new contract, the first result of our efforts to profitably grow our contract manufacturing business in North Carolina while also working to build our VLN franchise through the development of a new category focused on tobacco harm reduction,” said 22nd Century Chairman and CEO Larry Firestone in a statement.
In line with the operating targets outlined on our most recent results call, this agreement helps us to scale revenue, improve gross margin and achieve our goal of breakeven operations by the first quarter 2025.”