22nd Century Group (XXII) Soars After $9.5M Windfall, Expands Low-Nicotine Cigarette Rollout
22nd Century Group received a substantial $9.5 million cash payout this week from an insurance settlement tied to a November 2022 incident at its Grass Valley facility. The settlement, for business interruption claims, provides a non-recurring cash windfall that immediately bolsters the company’s balance sheet. Shares of XXII surged 39% in post-market trading on Tuesday to about $2.10 on the news Benzinga, reflecting renewed investor optimism after the stock languished near all-time lows. Management hailed the insurance proceeds as a turning point. “This settlement closes another chapter of our past and solidifies our company’s transition from a clean-up to entering a growth phase. We now have a balance sheet with meaningful cash resources that will allow us to execute on our strategy,” said CEO Larry Firestone in a statement Stocktitan. In other words, the infusion effectively draws a line under legacy setbacks and gives 22nd Century breathing room – and liquidity – to drive its growth initiatives in reduced-nicotine tobacco. The timing is opportune, as the company prepares to report third-quarter results and aims to convince the market that a turnaround is taking hold.
