Key Highlights

  • XXII shares fell 15.21% today to $0.0719.
  • Second-quarter Revenue declined 29.9% year over year to $2.9 million.
  • The loss from continuing operations was $3.3 million in the quarter.
  • Cash totaled $6.1 million on June 30, 2026.
  • On August 5, shareholders endorsed a reverse split ratio anywhere from 1-for-2 to 1-for-200.

Share Price Below Eight Cents Follows a Quarter of Shrinking Sales

Shares of 22nd Century Group (NASDAQ:XXII) are down 15.21% at $0.0719 today, which makes this a steeply discounted penny stock. No company-specific announcement could be tied to the drop, so it is being read against the latest quarterly numbers and recent Capital raising.

The Business sells reduced-nicotine tobacco, mainly its Very Low Nicotine cigarettes, which the FDA authorized as a Modified Risk Tobacco Product in December 2021. It also manufactures conventional tobacco products under contract for third-party brands.

The share price sits well below the $3.57 initial conversion and Warrant exercise price from the March offering. Multiple reverse splits have already been carried out to address Nasdaq listing standards, and the August proxy materials frame the new authority as meant for compliance with those rules.

Sales Decline 29.9% From Last Year as the Adjusted EBITDA Loss Widens

Second-quarter revenue reached $2.86 million, down 29.9% from the prior-year period and under the $4.1 million booked in the first quarter. Gross loss narrowed to $0.3 million from $0.6 million in the first quarter. The net loss from continuing operations came to $3.3 million, while the adjusted EBITDA loss expanded to $3.5 million from $2.6 million.

Cash closed at $6.1 million on June 30, 2026, down from $7.1 million at the end of 2025. Operating cash outflow reached $7.1 million over the first six months. The release stated there was no outstanding debt, yet the Balance Sheet shows about $1.1 million in notes and loans payable.

Two customers reportedly accounted for about 91% of second-quarter sales. A services agreement with Smoker Friendly International was also reportedly ended effective July 1, which is expected to produce a small Impairment charge in the third quarter.

VLN Shelf Count Grows Ahead of a 5,000-Store Target for Year-End

The company added about 150 stores across metro New York and northern New Jersey and entered roughly 60 California stores during the period. It now reports a presence in more than 2,000 stores across 20 states and is aiming for about 5,000 retail outlets by the end of 2026. VLN cigarette revenue, however, was only about $0.03 million in the quarter.

An earlier prospectus supplement referenced more than 5,000 stores in 26 states, a count that does not match the later quarterly release.

Share Count Outlook Depends on Next Reverse Split Timing and Preferred Conversions

XXII carried out a 1-for-15 Reverse Stock Split on January 22, 2026. In March it priced a $20 million offering of Series B convertible preferred stock with warrants, carrying a conversion floor of $0.714 per share, and part of the proceeds repurchased $9.65 million of earlier preferred stock.

At a special meeting on August 5, shareholders endorsed another reverse split at a ratio between 1-for-2 and 1-for-200, along with potential sales of up to $20 million in convertible preferred stock and $10 million in common stock. Watch points include the timing of the next reverse split, the Nasdaq listing position, and the next quarterly report.