{"success":true,"data":{"pressRelease":{"id":"132463","rtpr_id":"nGNX5M4LHV","ticker":"XXII","exchange":"NASDAQ","all_tickers":["XXII"],"title":"22nd Century CEO & Chairman Larry Firestone: Improved Gross Margin, ~5,000 Retail Outlets and >$50B Market Opportunity Highlight Mid-Year Stockholder Letter","author":"Globe Newswire","published_at":"2026-09-01T12:00:03.069Z","article_body":"VLN(®) Category Leader Accelerates 2H 2026 Growth Phase as Same-Store Sales\nClimb\n\n22nd Century Accelerates 2H 2026 Commercial Execution\n\nMOCKSVILLE, N.C., Sept. 01, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc.\n(Nasdaq: XXII), the leader in low-nicotine tobacco, low-nicotine cigarettes\nand the only tobacco products company focused on reducing the harms of smoking\nthrough nicotine reduction, today issued the following letter to stockholders\nfrom Lawrence Firestone, the Chief Executive Officer of 22nd Century Group,\nInc.: \n\n2026 Mid-Year Strategic Update Shareholder Letter\n\nDear Shareholders,\n\nAt 22nd Century Group, we believe long-term shareholder value is created when\na company has a clear mission, a differentiated product and strategy, and the\ndiscipline to execute. Our mission remains unchanged: to help adult smokers\ncombat the harms of tobacco and nicotine. As the architect of the newest\ncategory for smoking harm reduction, the low-nicotine category, our strategy\nis rooted in our proprietary low-nicotine tobacco platform that fills a unique\nplace in the market, the industry and society. Our VLN(®) cigarettes remain\nthe first and only low-nicotine combustible cigarette authorized by the U.S.\nFood and Drug Administration specifically to reduce the harms of smoking by\nhelping smokers smoke less.\n\nOver the past several months, we have been setting that foundation through\ndisciplined execution, expanding the classes of trade we sell through,\nstrengthening retail availability and consumer awareness, improving our\nproduct portfolio, and continuing to invest in low-nicotine technology. Today\nour focus is squarely on execution: expanding commercialization of our\nPinnacle and VLN(®) brands, improving the economics of the business, and\npositioning the Company for sustainable, profitable growth.\n\nThis is how we win and how we create long-term shareholder value and, over\ntime, increased market capitalization.\n\nWe Win by Expanding Our Retail Presence — 2,000 Outlets Today, ~5,000 by\nYear-End\n\nConsumers are already supporting our brands in approximately 2,000 retail\noutlets across the US and several of our newest adult consumers have told us\nhow satisfied they are with switching to VLN(®) cigarettes. The word has\nbegun to travel through consumers and our marketing initiatives will continue\nto drive awareness and trial.\n\nTo build on that demand, we recently launched Pinnacle Pure alongside Pinnacle\nVLN(®) in states that have authorized these products, broadening the\nvalue-driven Pinnacle brand. We are now taking both product families into\nCalifornia through an initial retail trial, as well as into the\nhigh-visibility markets of metro New York and northern New Jersey. This will\nbe followed in the fourth quarter of 2026 with a new digital convenience\nplatform offering direct to consumer home delivery of our products.\n\nInvestors will see additional announcements in the second half of 2026 on wins\nby expanding our distribution network. As our footprint grows to approximately\n5,000 outlets by year-end, we are strengthening not only the category itself,\nbut also 22nd Century's leadership position within it.\n\nWe Win by Driving Commercial Execution That Can Scale\n\nWinning in this business requires more than innovation. It requires execution\nin distribution, on the shelf, and through consumer adoption and repeat\npurchase. That is why we remain focused on building a stronger branded\nproducts business with increasing retail presence, led by our Pinnacle\nportfolio, better trade execution, and stronger support for our commercial\npartners.\n\nWe offer the only low-nicotine cigarette which is in a familiar form to\nsmokers, and with a recognizable brand, national distribution and disciplined\nshelf placement, this will enable the opportunity for trial and improve repeat\npurchase and revenue over time for our VLN(®) cigarette products.\n\nWe are now measuring early data on rate of sale. Since the beginning of the\nyear, same-store sales have been growing each month, and we have seen VLN(®)\ncigarette trial turn into carton purchases rather than individual packs. Data\nfrom retail point-of-sale is showing that volume has grown consistently by an\naverage of 10% per month in non-promotion periods, and we estimate now that\nactive VLN® user trial exceeds 5,000 cases and continues to grow monthly.\n\nOur goal is to build consumer awareness, smoking consumer adoption and brand\nloyalty. Then while rate of sale improves, reorder patterns and revenue will\nbecome more consistent, our platform will become increasingly more valuable to\ncustomers, retailers, and shareholders alike.\n\nWe Win by Improving the Economics — Gross Margin\n\nOne of our most important priorities has been improving the economic quality\nof our revenue. Shifting the mix of our revenue to our branded portfolio is\nour primary focus. Then, as we grow our branded products that carry positive\ngross margins will continue to drive profitability. This shift is occurring in\nthe third quarter 2026 and will continue as we go forward, but remains\ndependent on consistent volume for our factory of our branded products.\n\nWe Win by Building More Than a Single Product\n\nOur long-term opportunity extends beyond our current family of VLN(®)\nproducts and will leverage our robust IP portfolio. We are building a broader\nplatform appealing to different consumer brand choices. This will allow us to\ngrow the low-nicotine category by expanding our VLN(®) product offerings and\nform factors, supporting additional partner opportunities, and selectively\npursuing ways to leverage our proprietary low-nicotine technology more\nbroadly.\n\nWe believe this platform approach is important because it creates multiple\npaths to value. It allows us to drive toward the long-term strategic value in\nthe foundation that we have built. Over time, we believe successful execution\nacross these fronts can translate into stronger business performance, broader\ninvestor recognition, and a more appropriate market valuation for the Company.\n\nThis Is How We Create Long-Term Shareholder Value in the >$50 Billion US\nMarket\n\nOur path forward is grounded in a large, unserved market of smokers seeking a\nlow-nicotine combustible alternative to their current brands, a market we\ncurrently serve alone. Consumers have found our products on the shelf, and\nadoption is growing each month. With a base of repeat consumers in place, we\nwill introduce marketing and consumer engagement programs to drive accelerated\nawareness and adoption while maintaining pricing discipline.\n\nWhile building a new category takes persistence, 22nd Century is the clear\nleader and has a real opportunity to capture a meaningful portion of the\nestimated >$50 billion annual US combustible cigarette market at retail. Every\npack we sell to build the low nicotine category is a share shift. We do not\nview our initiatives as isolated efforts. Rather, they are connected parts of\none overarching value creation strategy.\n\nOn behalf of the Board of Directors and the entire 22nd Century team, thank\nyou for your continued support and confidence.\n\nSincerely,\n\nLawrence D. Firestone\nChairman and Chief Executive Officer\n22nd Century Group, Inc.\n\nAbout 22(nd) Century Group, Inc.\n22nd Century Group is pioneering the tobacco harm reduction movement by\nenabling smokers to take control of their nicotine consumption. \n\nOur Technology is Tobacco\nOur proprietary non-GMO reduced nicotine tobacco plants were developed using\nour patented technologies that regulate alkaloid biosynthesis activities\nresulting in a tobacco plant that contains 95% less nicotine than\ntraditional tobacco plants. Our extensive patent portfolio has been developed\nto ensure that our high-quality tobacco can be grown commercially at scale.\nWe continue to develop our intellectual property to ensure our ongoing\nleadership in the tobacco harm reduction movement. \n\nOur Products\nWe created our flagship product, the VLN(®) cigarette using our low nicotine\ntobacco, to give traditional cigarette smokers an authentic and familiar\nalternative in the form of a combustible cigarette that helps them take\ncontrol of their nicotine consumption. VLN(®) cigarettes have 95% less\nnicotine compared to traditional cigarettes and have been proven to allow\nconsumers to greatly reduce their nicotine consumption. \n\nFDA Authorized\nOur VLN(®) cigarette is the only low nicotine combustible cigarette\nauthorized by the FDA in the United States. \n\nVLN(®) is a registered trademark of 22nd Century Limited LLC. \n\nLearn more at xxiicentury.com\n(https://www.globenewswire.com/Tracker?data=lue3tElqrzCj-mgHQa8KifrL7jIGSs0oVPyj5rakBoKj3JXNml8Rj2tQerVx2y9O5i6cKciYr9j4rKmQM31fY6AUCrJln4MLYR--1ctDDJy7MYqCP0G1G1_YPtYE_foipLotCzfCAQK0Bb_p2QHjogM6S9E6T8Y465VBB26Yi4N1O4ph_-bKOZA_Ew1Te6KFz16j36sAHnW6q1dme3BOo_QfR8dFM7l_blHorN0QX4tqEUyiIP5bQhUk01y6XgxY1xJT81qbWf-TSXUYkxLR4A==),\non X (formerly Twitter)\n(https://www.globenewswire.com/Tracker?data=TIx4IwGU4-KTlfMWoXuAgCLuuvm8NDIn75F9a_sr9WZ6BsBi_ZsNw5JEy5QP8AE4orZ0JfxLVrMDY3y6cYRJ5jF-0wPxEITr9iyNkDSm0kDEQLEsqDoRHZqHBdqt5NnZqaJlHEqSCAC2pKc39QM5I8C3uXJVyWN_pZz414Mi372vB1pKLipY1fNTP2nciC0X5xfKAdNTUzrchyddVVrbUoDvqjBKZMuWNtMYAqQuNxUNXDejGc8nmD3L9MFLxPgW2BWxJ1Non3g9OplWeA6v_w1i3qQX-D2UWyS1sRHc-x0=),\non LinkedIn\n(https://www.globenewswire.com/Tracker?data=n-voPFPBsKhHkq1gFsksdEiDGdsE-vaBjb0nic-oKiiTQlWcYVLY8a_m4fctZz76OoMeWbmVqglX4xXQovuKWZlqXFBi6PYOffv4SBBkDIGbLeKdd2MZdiGS8Lt1HhMGQ7_au0218IgcM8TTUZMSOxOaLvRP9pzXW9JqvhCu-wZcdaoB9OZ3gy8Vg0340hODLFQzm8k1dSpzW-x1wmae3s2mU_s2QQzx0OsMjafziKhH6DIIVCiiVWC_TLDG-tUgnofu8bE4MUoTpHtxuQQ_rw==),\nand on YouTube\n(https://www.globenewswire.com/Tracker?data=hZruX1XUtyjJPFV2fNRb4LEC0NKZweDAoUJCQ7Cmi6H92uZzVrIDeMYkTZ7t-LIgE1GLbW8Hip-GB9q4YX-zDK-s_HyGLYBs7uFLM2FRsSyvNbSBd5NCPsd7iveZMufp6jywuuMp_9apqg-H5mWaCvmePN6URQNw9OsVlA0JVeUpp1q730R_fiMTHQtF9o1Aa1wwgLicvILRK80BO-M2RNOfIl4uTmwKKbGAY3kQWWOI_hRj1rZKRgxCN9qWmPyT). \n\nLearn more about VLN(®) at tryVLN\n(https://www.globenewswire.com/Tracker?data=4gXYgMSN-1Lsp04hjAEWE5Y_InCHH_vQzwSLHINXTNNt3Vwfxe-9ib8hdQt9uvQ4E3P6mpCFSTHbGYWTyt9xu67cMIDwEoMzayu4P-oRDthF53sMOieJKn17VMYtbsb6SffuY8nWaoaV5pJYMOvtw1uRMQNbllTXIuWCmdkBsB2bkDjIvMI1uF1vglb8ahR7XNjxIeExeclKMZf1RMskeEF_fFCB-KZ7KE8aX4G48Ck=)(®)\n(https://www.globenewswire.com/Tracker?data=SgNjIMasUr2kY172K6YivbSGD5WXipACTzcd2ZdohOwF4G3ssAEEFoXpEjBArrnMwWDkEw-EGYP_szW7HwGWfoehX9zDuIYkkDDWsQAxL-dg_P3glfEkh66_4kSdq31a-5jEnGy4fAZxhpeY9IojhhAzOlgEApQT0oqp0KokZs_wQiVUiQKmgmQxoZV1i_gzsuWsiScn6g5D3oMwiPxV01ADb2N95eVS_Kb5Fa18MhE=).com\n(https://www.globenewswire.com/Tracker?data=1ZITqicshhyCB40rEV04jd57ue1gnPt8QfThJFzRMFFVOT3_X02m1lAO1VCN-QRy8dLs64HFGV_G74pjAYx7iogTuCX3P7ql8_ivXGZEICUNTGPFPXZoCa4Zjw6VQFXMG6772zp4iYKtsSDfPrfiF_Cxk5og5HzZs4wKvIbWPMiTp1KwPHToJpbmQeqh69Ywj4xT0dzSL_RCraoYrxTZhCKwVMVMkkFbKXKQM_hVUls=). \n\nCautionary Note Regarding Forward-Looking Statements\n\nExcept for historical information, all of the statements, expectations, and\nassumptions contained in this press release are forward-looking statements,\nincluding but not limited to our full year business outlook. Forward-looking\nstatements typically contain terms such as “anticipate,” “believe,”\n“consider,” “continue,” “could,” “estimate,” “expect,”\n“explore,” “foresee,” “goal,” “guidance,” “intend,”\n“likely,” “may,” “plan,” “potential,” “predict,”\n“preliminary,” “probable,” “project,” “promising,” “seek,”\n“should,” “will,” “would,” and similar expressions.\nForward-looking statements include, but are not limited to, statements\nregarding (i) our cost reduction initiatives, (ii) our expectations regarding\nregulatory enforcement, including our ability to receive an exemption from new\nregulations, and (iii) our financial and operating performance. Actual results\nmight differ materially from those explicit or implicit in forward-looking\nstatements. Important factors that could cause actual results to differ\nmaterially are set forth in “Risk Factors” in the Company’s Annual\nReport on Form 10-K filed on March 20, 2026, and Quarterly Reports on Form\n10-Q on May 7, 2026 and August 14, 2026. All information provided in this\nrelease is as of the date hereof, and the Company assumes no obligation to and\ndoes not intend to update these forward-looking statements, except as required\nby law. \n\nInvestor Relations & Media Contact \nDaniel Otto \nChief Financial Officer & Investor Relations  \n22nd Century Group  \ninvestorrelations@xxiicentury.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0c134f7d-c166-4b24-874f-262b3515f650)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX5M4LHV","title":"22nd Century CEO & Chairman Larry Firestone: Improved Gross Margin, ~5,000 Retail Outlets and >$50B Market Opportunity Highlight Mid-Year Stockholder Letter","author":"Globe Newswire","ticker":"XXII","created":"2026-09-01T12:00:03.069Z","tickers":["XXII"],"exchange":"NASDAQ","article_body":"VLN(®) Category Leader Accelerates 2H 2026 Growth Phase as Same-Store Sales\nClimb\n\n22nd Century Accelerates 2H 2026 Commercial Execution\n\nMOCKSVILLE, N.C., Sept. 01, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc.\n(Nasdaq: XXII), the leader in low-nicotine tobacco, low-nicotine cigarettes\nand the only tobacco products company focused on reducing the harms of smoking\nthrough nicotine reduction, today issued the following letter to stockholders\nfrom Lawrence Firestone, the Chief Executive Officer of 22nd Century Group,\nInc.: \n\n2026 Mid-Year Strategic Update Shareholder Letter\n\nDear Shareholders,\n\nAt 22nd Century Group, we believe long-term shareholder value is created when\na company has a clear mission, a differentiated product and strategy, and the\ndiscipline to execute. Our mission remains unchanged: to help adult smokers\ncombat the harms of tobacco and nicotine. As the architect of the newest\ncategory for smoking harm reduction, the low-nicotine category, our strategy\nis rooted in our proprietary low-nicotine tobacco platform that fills a unique\nplace in the market, the industry and society. Our VLN(®) cigarettes remain\nthe first and only low-nicotine combustible cigarette authorized by the U.S.\nFood and Drug Administration specifically to reduce the harms of smoking by\nhelping smokers smoke less.\n\nOver the past several months, we have been setting that foundation through\ndisciplined execution, expanding the classes of trade we sell through,\nstrengthening retail availability and consumer awareness, improving our\nproduct portfolio, and continuing to invest in low-nicotine technology. Today\nour focus is squarely on execution: expanding commercialization of our\nPinnacle and VLN(®) brands, improving the economics of the business, and\npositioning the Company for sustainable, profitable growth.\n\nThis is how we win and how we create long-term shareholder value and, over\ntime, increased market capitalization.\n\nWe Win by Expanding Our Retail Presence — 2,000 Outlets Today, ~5,000 by\nYear-End\n\nConsumers are already supporting our brands in approximately 2,000 retail\noutlets across the US and several of our newest adult consumers have told us\nhow satisfied they are with switching to VLN(®) cigarettes. The word has\nbegun to travel through consumers and our marketing initiatives will continue\nto drive awareness and trial.\n\nTo build on that demand, we recently launched Pinnacle Pure alongside Pinnacle\nVLN(®) in states that have authorized these products, broadening the\nvalue-driven Pinnacle brand. We are now taking both product families into\nCalifornia through an initial retail trial, as well as into the\nhigh-visibility markets of metro New York and northern New Jersey. This will\nbe followed in the fourth quarter of 2026 with a new digital convenience\nplatform offering direct to consumer home delivery of our products.\n\nInvestors will see additional announcements in the second half of 2026 on wins\nby expanding our distribution network. As our footprint grows to approximately\n5,000 outlets by year-end, we are strengthening not only the category itself,\nbut also 22nd Century's leadership position within it.\n\nWe Win by Driving Commercial Execution That Can Scale\n\nWinning in this business requires more than innovation. It requires execution\nin distribution, on the shelf, and through consumer adoption and repeat\npurchase. That is why we remain focused on building a stronger branded\nproducts business with increasing retail presence, led by our Pinnacle\nportfolio, better trade execution, and stronger support for our commercial\npartners.\n\nWe offer the only low-nicotine cigarette which is in a familiar form to\nsmokers, and with a recognizable brand, national distribution and disciplined\nshelf placement, this will enable the opportunity for trial and improve repeat\npurchase and revenue over time for our VLN(®) cigarette products.\n\nWe are now measuring early data on rate of sale. Since the beginning of the\nyear, same-store sales have been growing each month, and we have seen VLN(®)\ncigarette trial turn into carton purchases rather than individual packs. Data\nfrom retail point-of-sale is showing that volume has grown consistently by an\naverage of 10% per month in non-promotion periods, and we estimate now that\nactive VLN® user trial exceeds 5,000 cases and continues to grow monthly.\n\nOur goal is to build consumer awareness, smoking consumer adoption and brand\nloyalty. Then while rate of sale improves, reorder patterns and revenue will\nbecome more consistent, our platform will become increasingly more valuable to\ncustomers, retailers, and shareholders alike.\n\nWe Win by Improving the Economics — Gross Margin\n\nOne of our most important priorities has been improving the economic quality\nof our revenue. Shifting the mix of our revenue to our branded portfolio is\nour primary focus. Then, as we grow our branded products that carry positive\ngross margins will continue to drive profitability. This shift is occurring in\nthe third quarter 2026 and will continue as we go forward, but remains\ndependent on consistent volume for our factory of our branded products.\n\nWe Win by Building More Than a Single Product\n\nOur long-term opportunity extends beyond our current family of VLN(®)\nproducts and will leverage our robust IP portfolio. We are building a broader\nplatform appealing to different consumer brand choices. This will allow us to\ngrow the low-nicotine category by expanding our VLN(®) product offerings and\nform factors, supporting additional partner opportunities, and selectively\npursuing ways to leverage our proprietary low-nicotine technology more\nbroadly.\n\nWe believe this platform approach is important because it creates multiple\npaths to value. It allows us to drive toward the long-term strategic value in\nthe foundation that we have built. Over time, we believe successful execution\nacross these fronts can translate into stronger business performance, broader\ninvestor recognition, and a more appropriate market valuation for the Company.\n\nThis Is How We Create Long-Term Shareholder Value in the >$50 Billion US\nMarket\n\nOur path forward is grounded in a large, unserved market of smokers seeking a\nlow-nicotine combustible alternative to their current brands, a market we\ncurrently serve alone. Consumers have found our products on the shelf, and\nadoption is growing each month. With a base of repeat consumers in place, we\nwill introduce marketing and consumer engagement programs to drive accelerated\nawareness and adoption while maintaining pricing discipline.\n\nWhile building a new category takes persistence, 22nd Century is the clear\nleader and has a real opportunity to capture a meaningful portion of the\nestimated >$50 billion annual US combustible cigarette market at retail. Every\npack we sell to build the low nicotine category is a share shift. We do not\nview our initiatives as isolated efforts. Rather, they are connected parts of\none overarching value creation strategy.\n\nOn behalf of the Board of Directors and the entire 22nd Century team, thank\nyou for your continued support and confidence.\n\nSincerely,\n\nLawrence D. Firestone\nChairman and Chief Executive Officer\n22nd Century Group, Inc.\n\nAbout 22(nd) Century Group, Inc.\n22nd Century Group is pioneering the tobacco harm reduction movement by\nenabling smokers to take control of their nicotine consumption. \n\nOur Technology is Tobacco\nOur proprietary non-GMO reduced nicotine tobacco plants were developed using\nour patented technologies that regulate alkaloid biosynthesis activities\nresulting in a tobacco plant that contains 95% less nicotine than\ntraditional tobacco plants. Our extensive patent portfolio has been developed\nto ensure that our high-quality tobacco can be grown commercially at scale.\nWe continue to develop our intellectual property to ensure our ongoing\nleadership in the tobacco harm reduction movement. \n\nOur Products\nWe created our flagship product, the VLN(®) cigarette using our low nicotine\ntobacco, to give traditional cigarette smokers an authentic and familiar\nalternative in the form of a combustible cigarette that helps them take\ncontrol of their nicotine consumption. VLN(®) cigarettes have 95% less\nnicotine compared to traditional cigarettes and have been proven to allow\nconsumers to greatly reduce their nicotine consumption. \n\nFDA Authorized\nOur VLN(®) cigarette is the only low nicotine combustible cigarette\nauthorized by the FDA in the United States. \n\nVLN(®) is a registered trademark of 22nd Century Limited LLC. \n\nLearn more at xxiicentury.com\n(https://www.globenewswire.com/Tracker?data=lue3tElqrzCj-mgHQa8KifrL7jIGSs0oVPyj5rakBoKj3JXNml8Rj2tQerVx2y9O5i6cKciYr9j4rKmQM31fY6AUCrJln4MLYR--1ctDDJy7MYqCP0G1G1_YPtYE_foipLotCzfCAQK0Bb_p2QHjogM6S9E6T8Y465VBB26Yi4N1O4ph_-bKOZA_Ew1Te6KFz16j36sAHnW6q1dme3BOo_QfR8dFM7l_blHorN0QX4tqEUyiIP5bQhUk01y6XgxY1xJT81qbWf-TSXUYkxLR4A==),\non X (formerly Twitter)\n(https://www.globenewswire.com/Tracker?data=TIx4IwGU4-KTlfMWoXuAgCLuuvm8NDIn75F9a_sr9WZ6BsBi_ZsNw5JEy5QP8AE4orZ0JfxLVrMDY3y6cYRJ5jF-0wPxEITr9iyNkDSm0kDEQLEsqDoRHZqHBdqt5NnZqaJlHEqSCAC2pKc39QM5I8C3uXJVyWN_pZz414Mi372vB1pKLipY1fNTP2nciC0X5xfKAdNTUzrchyddVVrbUoDvqjBKZMuWNtMYAqQuNxUNXDejGc8nmD3L9MFLxPgW2BWxJ1Non3g9OplWeA6v_w1i3qQX-D2UWyS1sRHc-x0=),\non LinkedIn\n(https://www.globenewswire.com/Tracker?data=n-voPFPBsKhHkq1gFsksdEiDGdsE-vaBjb0nic-oKiiTQlWcYVLY8a_m4fctZz76OoMeWbmVqglX4xXQovuKWZlqXFBi6PYOffv4SBBkDIGbLeKdd2MZdiGS8Lt1HhMGQ7_au0218IgcM8TTUZMSOxOaLvRP9pzXW9JqvhCu-wZcdaoB9OZ3gy8Vg0340hODLFQzm8k1dSpzW-x1wmae3s2mU_s2QQzx0OsMjafziKhH6DIIVCiiVWC_TLDG-tUgnofu8bE4MUoTpHtxuQQ_rw==),\nand on YouTube\n(https://www.globenewswire.com/Tracker?data=hZruX1XUtyjJPFV2fNRb4LEC0NKZweDAoUJCQ7Cmi6H92uZzVrIDeMYkTZ7t-LIgE1GLbW8Hip-GB9q4YX-zDK-s_HyGLYBs7uFLM2FRsSyvNbSBd5NCPsd7iveZMufp6jywuuMp_9apqg-H5mWaCvmePN6URQNw9OsVlA0JVeUpp1q730R_fiMTHQtF9o1Aa1wwgLicvILRK80BO-M2RNOfIl4uTmwKKbGAY3kQWWOI_hRj1rZKRgxCN9qWmPyT). \n\nLearn more about VLN(®) at tryVLN\n(https://www.globenewswire.com/Tracker?data=4gXYgMSN-1Lsp04hjAEWE5Y_InCHH_vQzwSLHINXTNNt3Vwfxe-9ib8hdQt9uvQ4E3P6mpCFSTHbGYWTyt9xu67cMIDwEoMzayu4P-oRDthF53sMOieJKn17VMYtbsb6SffuY8nWaoaV5pJYMOvtw1uRMQNbllTXIuWCmdkBsB2bkDjIvMI1uF1vglb8ahR7XNjxIeExeclKMZf1RMskeEF_fFCB-KZ7KE8aX4G48Ck=)(®)\n(https://www.globenewswire.com/Tracker?data=SgNjIMasUr2kY172K6YivbSGD5WXipACTzcd2ZdohOwF4G3ssAEEFoXpEjBArrnMwWDkEw-EGYP_szW7HwGWfoehX9zDuIYkkDDWsQAxL-dg_P3glfEkh66_4kSdq31a-5jEnGy4fAZxhpeY9IojhhAzOlgEApQT0oqp0KokZs_wQiVUiQKmgmQxoZV1i_gzsuWsiScn6g5D3oMwiPxV01ADb2N95eVS_Kb5Fa18MhE=).com\n(https://www.globenewswire.com/Tracker?data=1ZITqicshhyCB40rEV04jd57ue1gnPt8QfThJFzRMFFVOT3_X02m1lAO1VCN-QRy8dLs64HFGV_G74pjAYx7iogTuCX3P7ql8_ivXGZEICUNTGPFPXZoCa4Zjw6VQFXMG6772zp4iYKtsSDfPrfiF_Cxk5og5HzZs4wKvIbWPMiTp1KwPHToJpbmQeqh69Ywj4xT0dzSL_RCraoYrxTZhCKwVMVMkkFbKXKQM_hVUls=). \n\nCautionary Note Regarding Forward-Looking Statements\n\nExcept for historical information, all of the statements, expectations, and\nassumptions contained in this press release are forward-looking statements,\nincluding but not limited to our full year business outlook. Forward-looking\nstatements typically contain terms such as “anticipate,” “believe,”\n“consider,” “continue,” “could,” “estimate,” “expect,”\n“explore,” “foresee,” “goal,” “guidance,” “intend,”\n“likely,” “may,” “plan,” “potential,” “predict,”\n“preliminary,” “probable,” “project,” “promising,” “seek,”\n“should,” “will,” “would,” and similar expressions.\nForward-looking statements include, but are not limited to, statements\nregarding (i) our cost reduction initiatives, (ii) our expectations regarding\nregulatory enforcement, including our ability to receive an exemption from new\nregulations, and (iii) our financial and operating performance. Actual results\nmight differ materially from those explicit or implicit in forward-looking\nstatements. Important factors that could cause actual results to differ\nmaterially are set forth in “Risk Factors” in the Company’s Annual\nReport on Form 10-K filed on March 20, 2026, and Quarterly Reports on Form\n10-Q on May 7, 2026 and August 14, 2026. All information provided in this\nrelease is as of the date hereof, and the Company assumes no obligation to and\ndoes not intend to update these forward-looking statements, except as required\nby law. \n\nInvestor Relations & Media Contact \nDaniel Otto \nChief Financial Officer & Investor Relations  \n22nd Century Group  \ninvestorrelations@xxiicentury.com\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0c134f7d-c166-4b24-874f-262b3515f650)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-01T12:00:03.416774806Z","server_sent_at_ms":1788264003416},"received_at":"2026-09-01T12:00:03.503Z","source_url":"https://www.globenewswire.com/news-release/2026/09/01/3354059/0/en/22nd-century-ceo-chairman-larry-firestone-improved-gross-margin-5-000-retail-outlets-and-50b-market-opportunity-highlight-mid-year-stockholder-letter.html"},"analysis":{"id":"121360","press_release_id":"132463","analysis_json":{"industry":{"label":"Tobacco","sector":"Consumer Staples"},"redFlags":[],"eventType":"operations_update","narrative":"22nd Century Group issued a mid-year shareholder letter highlighting accelerated growth in its low-nicotine tobacco business and improving gross margins.\n\nThe company currently operates in about 2,000 retail outlets and targets approximately 5,000 by year-end, with same-store sales volume growing 10% monthly in non-promotion periods.\n\nManagement estimates active VLN user trial exceeds 5,000 cases and views the >$50 billion US combustible cigarette market as a significant opportunity for category share shift.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"22nd Century targets 150% retail expansion to 5,000 outlets by year-end as same-store sales volume climbs 10%."},"keyFigures":{"customDimensions":{"active_trial_cases":5000,"retail_outlets_target":5000,"retail_outlets_current":2000,"monthly_volume_growth_rate":"10%"}},"quotedText":"Our path forward is grounded in a large, unserved market of smokers seeking a low-nicotine combustible alternative to their current brands, a market we currently serve alone.","namedEntities":{"people":[{"name":"Lawrence Firestone","role":"Chairman and Chief Executive Officer"},{"name":"Daniel Otto","role":"Chief Financial Officer & Investor Relations"}],"products":["VLN","Pinnacle","Pinnacle Pure"],"companies":[{"name":"22nd Century Group, Inc.","ticker":"XXII"},{"name":"U.S. Food and Drug Administration","relationship":"regulatory"}],"dollarAmounts":[{"amount":">$50 billion","context":"annual US combustible cigarette market"}]},"materialImpact":{"score":3,"reasoning":"Shareholder letter provides concrete operational targets (expanding to ~5,000 retail outlets) and positive qualitative metrics (10% monthly volume growth, improving gross margins), representing a solid execution update but lacking audited financials or binary regulatory events."},"tickerRelevance":{"others":[],"primary":"XXII"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"operational-update","sectorWeight":"consumer-staples"}},"event_type":"operations_update","event_type_secondary":null,"sentiment":"bullish","material_impact_score":3,"narrative":"22nd Century Group issued a mid-year shareholder letter highlighting accelerated growth in its low-nicotine tobacco business and improving gross margins.\n\nThe company currently operates in about 2,000 retail outlets and targets approximately 5,000 by year-end, with same-store sales volume growing 10% monthly in non-promotion periods.\n\nManagement estimates active VLN user trial exceeds 5,000 cases and views the >$50 billion US combustible cigarette market as a significant opportunity for category share shift.","key_figures":{"customDimensions":{"active_trial_cases":5000,"retail_outlets_target":5000,"retail_outlets_current":2000,"monthly_volume_growth_rate":"10%"}},"named_entities":{"people":[{"name":"Lawrence Firestone","role":"Chairman and Chief Executive Officer"},{"name":"Daniel Otto","role":"Chief Financial Officer & Investor Relations"}],"products":["VLN","Pinnacle","Pinnacle Pure"],"companies":[{"name":"22nd Century Group, Inc.","ticker":"XXII"},{"name":"U.S. Food and Drug Administration","relationship":"regulatory"}],"dollarAmounts":[{"amount":">$50 billion","context":"annual US combustible cigarette market"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-01T13:18:42.492Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"small-cap","eventGravity":"operational-update","sectorWeight":"consumer-staples"}},"durationMs":null,"modelName":"glm-4.7"}}