22nd Century Announces Series B Preferred Stock Financing

22nd Century ( (XXII) ) has issued an announcement.

On March 20, 2026, 22nd Century Group, Inc. entered into a securities purchase agreement with investors for a registered direct offering of up to $20 million in Series B Convertible Preferred Stock and accompanying warrants, following stockholder approval on February 20, 2026. At the initial closing, expected on March 24, 2026, investors are set to purchase about $16 million of preferred shares and warrants, with a further $4 million available at a second closing within one year, subject to trading and equity conditions.

The Series B Preferred Stock carries a $1,000 stated value, no general voting rights, priority in liquidation over common stock, and is perpetual with no maturity date, but is convertible into common shares at a fixed price of $3.57 or an alternative VWAP-based price, both subject to a floor and anti-dilution adjustments. The securities feature 100% warrant coverage at a $3.57 exercise price, investor preemptive rights in future financings, company redemption rights at 110% of stated value after six months, tight limitations on new indebtedness, and structural protections that may support the company’s capital needs while potentially diluting common shareholders and limiting liquidity for the preferred stock, which will not be listed for trading.

The most recent analyst rating on (XXII) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

Spark’s Take on XXII Stock

According to Spark, TipRanks’ AI Analyst, XXII is a Neutral.

The score is primarily held down by weak financial performance (declining revenue, large losses, and negative cash flow) and a strongly bearish technical setup with the stock far below key moving averages. Earnings-call updates provide some offset via improved balance-sheet positioning and strategic progress in VLN expansion, but valuation signals are limited due to an uninformative P/E and no dividend data.

To see Spark’s full report on XXII stock, click here.

More about 22nd Century

22nd Century Group, Inc. is a Nevada-incorporated company that issues common and preferred equity securities and is listed on Nasdaq. The company uses structured preferred stock and warrant offerings as part of its financing strategy, targeting institutional and other accredited investors seeking equity-linked exposure rather than traditional debt instruments.

Average Trading Volume: 28,085

Technical Sentiment Signal: Strong Sell

Current Market Cap: $1.84M

See more data about XXII stock on TipRanks’ Stock Analysis page.