Whats up everyone and welcome back to what is the penultimate video of the year on the channel.
I hope you all had a fantastic Christmas break and are looking forward to a great start to 2022.
We have been talking about FDA penny stocks for a while now
and so in this video I share with you updates on one top penny stock
which recently received FDA approval and is looking to disrupt the $817bn tobacco industry.
They have some strong commercial plans and catalysts lined up making this penny stock
one of the top penny stocks for your watchlist for 2022. So you want to make sure you watch
the video till the end of video, so you don’t miss out on their insights on their catalysts for 2022.
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So let’s get straight into it and talk about 22nd Century Group (Nasdaq: XXII). It is now sitting at
$3.08 with a market cap of $499m. 22nd Century is flat on the day but over the last 4 days it is up
by just under 40% on the back of FDA approval received. Once trading at ytd lows of $2.20,
it is now building on the FDA momentum and pushing past the $3 per share price mark.
And when you look at it over the last 6months, it is still sitting down 37%
giving an indication of how much mileage they have to cover and how far achieving this FDA
approval can take this penny stock. Let’s find out what commercialisation plans the management have.
22nd Century Group, Inc. is a leading plant biotechnology company
focused on technologies that alter the level of nicotine in tobacco plants
and the level of cannabinoids in hemp/cannabis plants through genetic engineering, gene-editing,
and modern plant breeding. Their primary mission in tobacco is to reduce the harm caused by smoking
by bringing their reduced nicotine content tobacco cigarettes – containing 95% less nicotine
than conventional cigarettes – to adult smokers in the U.S. and international markets. And their
mission in hemp/cannabis is to develop and commercialize proprietary hemp/cannabis plants
with valuable cannabinoid profiles and desirable agronomic traits.
The company says that
three out of four adult smokers want to quit and the data on these products show
they can help addicted adult smokers transition away from highly addictive combusted cigarettes.
And so having options like their authorised products, which contain less nicotine and are
reasonably likely to reduce nicotine dependence, may help adult smokers. All very exciting stuff.
22nd recently confirmed that the FDA Authorized the Marketing
of their VLN as a Modified Risk Tobacco Product.
They announced that the FDA authorized the marketing of their VLN® King
and VLN® Menthol King reduced nicotine content cigarettes as modified risk tobacco products
(or MRTPs). In doing so, the Agency found that VLN® – which smokes, tastes,
and smells like a conventional cigarette but contains 95% less nicotine than conventional,
highly addictive cigarettes – “helps reduce exposure to, and consumption of, nicotine
for smokers who use them.” So a big approval for the company given the market opportunity.
Their CEO James Mish added that With 60% of adult smokers in their U.S. market research
indicating they are likely to try VLN®, this is a complete game-changer for 22nd Century,
the tobacco industry, public health, and adult smokers looking to change their relationship with
nicotine. This is the first, and most likely will be the only, combustible cigarette to ever carry
the FDA’s MRTP designation. The FDA’s decision to require the additional headline claim ‘Helps
You Smoke Less’ alongside their requested headline claim of '95% Less Nicotine' gives adult smokers a
crystal-clear reason to replace their conventional and highly addictive cigarettes with VLN®.
And so having secured this FDA marketing order, they are fully prepared to launch VLN®
with select retail and marketing partners in their pilot markets in the U.S. within the
next 90 days and in the first of several global markets by the end of the first quarter of 2022.
They are also in discussions with additional retail trade, marketing,
and strategic partners to scale VLN® sales in the U.S. and internationally.
And this for me is what is most exciting about this FDA approval,
the branding to go with the product as you may know how stringent regulatory bodies are
on how you market your products to the consumer.
The FDA authorized the marketing of VLN® with the following MRTP claims:
“Helps you smoke less.” “95% less nicotine.”
“Helps reduce your nicotine consumption.” “...Greatly reduces your nicotine consumption.”
These claims I think will hugely boost their commercialisation and marketing of these products
as we head into 2022 as VLN® is also the first and only combustible cigarette to come to market
that complies with the FDA’s proposed nicotine cap for conventional cigarettes
in its Comprehensive Plan for Tobacco and Nicotine Regulation,
as well as New Zealand’s recently proposed reduced nicotine content mandate.. How really exciting.
But before we go any further, let’s now hear from their CEO James Mish on their key objectives and
catalysts which investors can look forward to in 2022. 3.18 – 4.44, 7 – 7.44 . 9.47 – 11.45
So some really interesting stuff to be expected with this VLN brand,
its international launch expected to be in markets by Q1, 22.
It’s also worth calling out that 22nd Century Reported their Financial Results for the Third
Quarter 2021 reporiting a Record Year-to-Date Net Sales of $23.0 Million, Up 11% From 2020 and with
a Strong Financial Position with Cash position of $55.2 Million as of September 30, 2021.
They added that their VLN® is market-ready. The Company’s U.S. pilot program and manufacturing
capabilities are in place to launch VLN® in the U.S. within 90 days of receiving MRTP designation.
So this takes us nicely to the end of Q1, 22 to see how these plans are fairing.
The Company plans to position VLN® in the premium pricing segment of the cigarette market
and, therefore, expects it to deliver corresponding margins.
The Company continued its international launch process for VLN®. The Company is focusing on
several of the leading markets in Asia and a test market in Europe. These markets have a strong
affinity for new, modified risk tobacco products and will likely require minimal interaction with
regulators to launch VLN®. Sales to local partners in one or more markets are expected to begin in
the first quarter of 2022. The Company also plans to establish a company branch in New Zealand.
So some very very interesting catalysts and mindblowing prospects ahead for this penny stock
as we head into 2022 but only consider getting in if the price is right for you and if you
fully understand the risks. This video is not financial advice, a buy or a sell recommendation,
but is meant to bring some new and exciting penny stocks to your attention
for you to do your own research.. As always I would love to hear from you,
so please let me know your thoughts on this top penny stock in the comments section below and
what other penny stocks are catching your eyes lately.
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Thank you so much for being here and I look forward to have you in my next video. Thank you