22nd Century Group (NASDAQ: XXII) Enters Exclusive Agreement with Smoker Friendly; Expands Product Line-

On January 1, 2025, 22nd Century Group, Inc. finalized a Master Services Agreement and Addendum #1 with Smoker Friendly International, LLC (SF) to become the exclusive licensee and manufacturer of SF’s cigarette brands for the next five years. This exclusive agreement covers 11 existing SF brands already present in Smoker Friendly’s network of retail stores and introduces eight new premium SF brands. The deal also potentially includes the addition of other tobacco products such as filtered cigars and reduced-nicotine content cigarettes through additional addendums.

22nd Century Group has agreed to pay SF royalties for each carton of cigarettes manufactured and sold to distributors under the terms of the agreement. This new deal comes as an extension of the parties’ previous Private Label Manufacturing Agreement, which was set to expire.

The specifics of the agreement will be included as an exhibit in the upcoming Annual Report on Form 10-K. Additionally, a press release was issued on January 7, 2025, highlighting key details of the agreement. Although this information, along with the exhibit, is being disclosed under Regulation FD, it is not considered as filed for purposes of the Securities Exchange Act of 1934 or integrated into the Company’s filings unless explicitly stated otherwise.

The new agreement signifies a significant step in the relationship between 22nd Century Group and Smoker Friendly, underlining opportunities for mutual growth and expansion. Notable aspects of the deal include plans to integrate SF’s existing filtered cigar business and introduce a reduced nicotine content brand that aligns with 22nd Century Group’s VLN product line. This move aims to offer consumers greater control over their nicotine consumption through a variety of product options.

Larry Firestone, Chief Executive Officer of 22nd Century Group, conveyed excitement about the agreement, emphasizing its foundational importance and the potential for brand growth and business expansion. The Company is focused on broadening its product range under this agreement, in alignment with ongoing efforts to introduce VLN companion brands that cater to the reduced nicotine content product category.

The path forward involves leveraging 22nd Century’s manufacturing and distribution capabilities to drive growth opportunities and meet consumer demand effectively. Keelan Gallagher, Vice President Operations at Smoker Friendly, highlighted the company’s anticipation to enhance product offerings in collaboration with 22nd Century, emphasizing the value of the integrated platform and additional product capabilities provided by the partnering entity.

For more information regarding 22nd Century Group’s mission and offerings, visit their official website at xxiicentury.com. Additional inquiries can be directed to the Investor Relations contact, Matt Kreps, at [email protected] or 214-597-8200.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read 22nd Century Group’s 8K filing here.

About 22nd Century Group

22nd Century Group, Inc, a tobacco products company, engages in the sale and distribution of its own proprietary new reduced nicotine tobacco products. The company offers reduced nicotine content tobacco plants and very low nicotine combustible cigarette products. It also provides contract manufacturing services for conventional combustible tobacco products for third-party brands.