22nd Century Group, Inc. (OTCMKTS:XXII) Up on Successful Warrant Conversion
22nd Century Group, Inc. (OTCMKTS:XXII) is running another positive streak, announcing positive developments around the issuance of warrants to boost financing operations. XXII stood at $1.19 after adding more than 9% on trading volumes of above $590,000. We still have not seen a directed promotional effort for this ticker. The company opened on an upward note on Wednesday. 
XXII became more active after receiving the green light to market very light cigarettes in the Benelux countries. Then, early today the company announced an exercise of warrants and the release had a positive effect on overall sentiment. Companies Sabby Healthcare Master Fund, Ltd. and Sabby Warrant Master Fund Ltd. converted the last of their outstanding Series B Warrants into shares of the company’s common stock. But this also means more than two million shares in the hands of insiders.
Speaking of insiders, there has been low-key selling in the past month, which has not affected greatly the general trend. The conversion of warrants has improved the financial situation and allows business development, XXII announced. So far, the cigarette company is equipped with the following financials:
- $278,000 Cash
- $2.9 million Total assets
- $1.8 million Current liabilities
- $10 million Total liabilities
- Zero revenues
- $2.5 million Net loss
It is possible that those results would be tweaked in the next few months, and XXII is very capable of grabbing investors’ attention with a potential to keep up a cash cow business of a sought-after product.
A close company, Vapor Corp. (OTCMKTS:VPCO) is also moving around the dollar levels, though supported by the demand for electronic cigarettes.
And International Stem Cell Corp. (OTCMKTS:ISCO) is a company that was ruined by the sale of warrants. The selling of shares and rights for 15 cents quickly eroded the ticker’s price, which was as high as 25 cents a few days ago. In general, the issuance of warrants is a red flag for penny stock companies as there are more incentives for selling to lock in profits.
The next few days will show if XXII is active enough with messages and developments to continue attracting attention. If you believe in this ticker’s potential, it is still best to acknowledge that the stock is capable of rather sharp corrections, and adjust the size of your investment and your preferred time frame accordingly.
