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22nd Century CEO & Chairman Larry Firestone Provides 2025 Year-in-Review Letter to Stockholders

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MOCKSVILLE, N.C., Jan. 15, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the onl...

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AI Summary

22nd Century Group highlights significant progress in harm reduction strategies. VLN® reduced-nicotine cigarettes authorized as modified risk products by the FDA. Distribution expanded to nearly 2,000 retail locations across 20 states. Consumer feedback indicates substantial reductions in nicotine consumption. The regulatory landscape suggests future growth potential for reduced-nicotine alternatives.

Sentiment Rationale

XXII's position as a leader in reduced-nicotine products aligns with evolving regulations, potentially boosting sales. Successful rollouts of VLN® products can increase market penetration, similar to trends seen with other health-oriented products in regulated industries.

Trading Thesis

The regulatory changes proposed by the FDA imply sustained growth in the coming years. Historical shifts in tobacco regulations have often led to long-term industry transformations, providing significant opportunities for early adopters.

Market-Moving

  • 22nd Century Group highlights significant progress in harm reduction strategies.
  • VLN® reduced-nicotine cigarettes authorized as modified risk products by the FDA.
  • Distribution expanded to nearly 2,000 retail locations across 20 states.

Key Facts

  • 22nd Century Group highlights significant progress in harm reduction strategies.
  • VLN® reduced-nicotine cigarettes authorized as modified risk products by the FDA.
  • Distribution expanded to nearly 2,000 retail locations across 20 states.
  • Consumer feedback indicates substantial reductions in nicotine consumption.
  • The regulatory landscape suggests future growth potential for reduced-nicotine alternatives.

Companies Mentioned

  • MO (MO)
  • PM (PM)
  • BTI (BTI)

Corporate Developments

The strategic developments and regulatory alignments indicated in the article significantly enhance XXII's market position and prospects for future growth, which is highly relevant to investors.

22nd Century Group, Inc. CEO Larry Firestone Delivers 2025 Year-in-Review Letter to Stockholders

MOCKSVILLE, N.C., Jan. 15, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a leader in the fight against nicotine addiction and tobacco harm reduction, has issued an important letter to its stockholders from CEO Lawrence Firestone. The message reflects on a year marked by significant achievements and strategic advancements heading into 2026.

Pivotal Year in 2025

According to Firestone, 2025 was a transformative year for 22nd Century Group, Inc.. The company successfully completed a multi-year restructuring process and began executing strategic initiatives aimed at solidifying its market position. With a focus on disciplined execution and scientific integrity, the company has enhanced its financial foundation while prioritizing long-term value for its shareholders.

Commitment to Tobacco Harm Reduction

22nd Century remains committed to leading the tobacco harm reduction movement through innovative, science-based solutions. The firm aims to provide adult smokers with alternatives that significantly mitigate nicotine exposure, supporting their journey towards reduced dependence while maintaining consumer choice.

Central to this strategy is the proprietary VLN® reduced-nicotine cigarette platform—recognized as the first and only combustible cigarette authorized by the FDA as a Modified Risk Tobacco Product (MRTP). These products feature approximately 95% less nicotine than traditional cigarettes, maintaining taste and ritual while offering a scientifically validated approach to harm reduction.

Positive Consumer Feedback

Since the relaunch of VLN® and its partner products in 2025, 22nd Century has begun receiving encouraging feedback from adult consumers. Many smokers have reported significant reductions in cigarette consumption, with one individual noting a 66% decrease in just 12 weeks. The company plans to share more data as it continues to assess consumer engagement and health outcomes throughout 2026.

Strategic and Operational Achievements

Throughout 2025, 22nd Century made noteworthy strides in its strategic priorities:

  • Transition to Higher-Margin Branded Products: A shift towards proprietary, value-added offerings with VLN® at the core of its growth strategy.
  • Commercial Expansion: Increased distribution of VLN® products, now available in nearly 2,000 retail locations across more than 20 states.
  • Operational Discipline: Cost-savings initiatives have lowered operating costs and improved efficiency.
  • Balance Sheet Strength: The company ended 2025 with a stronger balance sheet, marked by debt elimination and improved liquidity.

These efforts are expected to enhance 22nd Century's long-term financial outlook as it aims for sustainable profitability.

Regulatory Landscape and FDA Proposed Nicotine Rule

In January 2025, the FDA proposed a rule to limit the maximum nicotine content in cigarettes—a landmark development with potential implications for the tobacco market. This move signals a growing regulatory consensus on reducing nicotine to manageable levels, which could diminish smoking initiation and dependence.

22nd Century is uniquely positioned in this evolving regulatory landscape. The VLN® products are specifically designed to align with low nicotine thresholds, supported by extensive scientific research and FDA backing. The proposal further emphasizes the relevance of its harm-reduction strategy.

Looking Ahead to 2026

As 22nd Century Group, Inc. progresses into 2026, it does so fortified with a more focused strategic vision and robust financial footing. Key priorities include:

  • Expanding distribution and increasing consumer awareness of VLN® products.
  • Maintaining disciplined cost management and capital allocation.
  • Aiming for EBITDA breakeven as it scales higher-margin revenues.
  • Continuing active engagement with FDA regulators and public health stakeholders.

The convergence of regulatory momentum and consumer interest presents a promising opportunity for 22nd Century to create long-term value for its shareholders.

Appreciation from Leadership

In closing, Firestone expressed gratitude on behalf of the Board of Directors and the entire team at 22nd Century Group, Inc. He emphasized the relentless commitment and strengths of employees, partners, and shareholders that have driven progress in 2025. The company remains dedicated to transparency and responsible leadership as it continues its mission to diminish the harms associated with tobacco consumption.

About 22nd Century Group, Inc.

22nd Century Group, Inc. is at the forefront of the tobacco harm reduction movement, empowering smokers to manage their nicotine intake using innovative technologies. Its flagship product, the VLN® cigarette, offers smokers a credible low-nicotine alternative, allowing them to significantly reduce their intake.

For more information, visit xxiicentury.com.

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