SEC Filing Summary: 22nd Century Group, Inc. (XXII)
Business Context and Reporting Period
This Form 8-K was filed on July 16, 2024, by 22nd Century Group, Inc., a Nevada corporation. The Company's common stock trades on the Nasdaq Capital Market under the symbol "XXII". The filing addresses a regulatory notice regarding continued listing standards.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on a listing deficiency notice.
Material Changes and Listing Status
On July 16, 2024, the Company received a deficiency letter from the Nasdaq Listing Qualifications Department. The notice states that for the last 30 consecutive business days, the Company's common stock failed to maintain a minimum closing bid price of $1.00 per share, violating Nasdaq Listing Rule 5550(a)(2). This notification has no immediate effect on the listing or trading of the stock.
Outlook, Compliance Path, and Risks
- Compliance Period: The Company has 180 calendar days from the notification date, or until January 13, 2025, to regain compliance.
- Remediation Requirement: To regain compliance, the closing bid price must be at or above $1.00 for a minimum of 10 consecutive business days within the compliance period.
- Secondary Compliance Period: If the Company fails to regain compliance by January 13, 2025, it may be afforded a second 180-day period. Qualification for this period requires meeting the market value of publicly held shares requirement and all other initial listing standards, excluding the minimum bid price requirement.
- Risk of Delisting: Failure to meet the requirements of the second compliance period could result in delisting from the Nasdaq Capital Market.
Investor Verification Checklist
- Verify the current closing bid price of XXII stock to assess proximity to the $1.00 threshold.
- Monitor the stock price daily to track progress toward the 10 consecutive business days requirement.
- Review the Company's market value of publicly held shares to determine eligibility for a potential second compliance period.
- Check for future 8-K filings regarding the Company's intent to cure the deficiency or any updates on delisting proceedings.