Reverse Stock Split Announced by 22nd Century Group, Inc.
Introduction
Mocksville, North Carolina–(Newsfile Corp. – December 13, 2024) – 22nd Century Group, Inc. (NASDAQ: XXII), a tobacco products company that is leading the fight against nicotine and believes smokers should have a choice about their nicotine consumption, today announced that it will effect a reverse stock split of its outstanding shares of common stock, par value $0.00001 per share (the “Common Stock”), at a ratio of 1-for-135, to be effective as of December 17, 2024. The reverse stock split is intended for the Company to regain compliance with the minimum bid price requirement of $1.00 per share of common stock for continued listing on Nasdaq.
What is a Reverse Stock Split?
A reverse stock split is a corporate action that reduces the total number of a company’s outstanding shares while increasing the share price proportionally. In the case of 22nd Century Group, the reverse stock split will consolidate every 135 shares into 1 share, effectively raising the share price to meet Nasdaq’s minimum bid price requirement.
Effects of the Reverse Stock Split
The reverse stock split will not change the overall value of an investor’s holdings in the company, as the reduction in shares will be offset by a proportionate increase in share price. However, it is important for investors to understand that a reverse stock split can sometimes indicate underlying issues within the company, such as a declining stock price or financial difficulties.
How the Reverse Stock Split Will Affect Me
As an investor in 22nd Century Group, Inc., the reverse stock split may initially result in a higher share price, but the overall value of your investment will remain the same. It is crucial to monitor the company’s performance following the reverse stock split to ensure that it regains compliance with Nasdaq’s listing requirements and maintains a sustainable business model.
How the Reverse Stock Split Will Affect the World
On a broader scale, the reverse stock split announced by 22nd Century Group, Inc. highlights the company’s commitment to combating nicotine addiction and providing smokers with alternative choices. By taking proactive measures to comply with Nasdaq’s listing requirements, the company demonstrates its dedication to long-term growth and sustainability in the tobacco products industry.
Conclusion
In conclusion, the reverse stock split initiated by 22nd Century Group, Inc. reflects the company’s strategic move to maintain its position in the market and uphold its values of empowering smokers to make informed decisions about their nicotine consumption. As the company implements this corporate action, investors and stakeholders alike must closely monitor its impact on financial performance and market dynamics.
