22nd Century Group To Sell Hemp/Cannabis Franchise

(RTTNews) - 22nd Century Group Inc. (XXII) said it has reached an agreement to sell substantially all of its GVB Biopharma or "GVB" hemp/cannabis operations to Specialty Acquisition Corporation, a Nevada corporation, an entity affiliated with current GVB employees.

Terms of the transaction include a cash payment to the company of $1 million at closing of the saleand a 12% secured promissory note for $1.25 million issued by the Buyer and payable through six equal monthly installments of principal and accrued interest commencing the fourth calendar month after the Closing.

The company plans to use the proceeds from the sale to further deleverage its balance sheet.

The sale is expected to close in early December 2023.