22nd Century sold 15.8 million shares for about $4.7 million, with 19.2 million shares outstanding on October 23. The cash helps, but the large sale and permission to sell more could leave existing owners with a smaller share of the company.
The cash gives 22nd Century more money to use. Issuing so many shares means each existing share represents a smaller piece of the company. Further sales could shrink that piece again.
Follow 22nd Century Group, Inc. (XXII) free. When we publish a story about it, you get the plain-English explanation as an alert.
Get alerts for XXII