Shares of the 22nd Century Group, Inc. (XXII) stock were going high in the premarket trading session today on December 27, 2021. XXII stock price saw an uptrend of 2.30% to reach $3.12 a share at the time of this writing. The stock also soared in the previous trade and went up by 38.64% at closing. Let’s take a closer look at this stock to understand the reason for bullish sentiment.

What’s Happening?

XXII stock is enjoying the bullish sentiment since the announcement of getting the marketing approval of the company’s VLN® as a Modified Risk Tobacco Product by the U.S. Food and Drug Administration (FDA).  22nd Century Group announced on December 23, 2021, that FDA has authorized the marketing of VLN® King and VLN® Menthol King cigarettes with reduced nicotine content as modified risk tobacco products (MRTPs). VLN® is similar to the conventional cigarette concerning smoke, taste, and smell but contains 95% less nicotine. This characteristic is beneficial for smokers who use conventional cigarettes.

The company is on a mission to stop or reduce tobacco-related diseases and deaths. Three out of four adult smokers want to quit smoking. The data suggest that the product having less nicotine help smokers by reducing their nicotine dependence. The company is anticipating the launch of VLN® within the next three months in the U.S. In the global markets, the company hopes to launch the product by the end of the first quarter of 2022.

Previous News of XXII stock

On December 15, 2021, 22nd Century Group, Inc. along with Aurora Cannabis Inc. announced a three-way non-exclusive agreement to license biosynthesis intellectual property to Cronos Group Inc. The motive behind this is to advance the research and development on the biosynthesis of cannabinoids. Under the licensing agreements, 22nd Century and Aurora will have the shared global IP rights to commercialize key aspects of cannabinoid biosynthesis in plants and micro-organisms.

Financial View of XXII stock

In November, the company announced third quarter 2021 financial results according to which net sales were $7.8 million in the reported quarter. This represents a 6.9% increase as compared to $7.3 million in the same period of the previous year – a good sign for shareholders of XXII stock. Gross profit of the company was $87 thousand in the third quarter of 2021. The operating expenses of the company increased by $3.5 million as compared to the same period of the previous year. Operating loss was $7.9 million and net loss was $9.4 million in the third quarter of 2021. The company ended the quarter with $55.2 million cash in hand.