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Jun 30, 2022
22nd Century Group Q2 2022 Earnings Report
22nd Century Group's Q2 2022 financial results were reported, with revenue increasing due to higher contract manufacturing volumes and the acquisition of GVB Biopharma.
Key Takeaways
22nd Century Group reported a 73% increase in net sales to $14.5 million for the second quarter of 2022, driven by increased contract manufacturing volumes and the acquisition of GVB Biopharma. The company's VLN pilot in Chicago exceeded expectations, leading to accelerated expansion plans in Colorado. The acquisition of GVB Biopharma is expected to double the company's total revenue and provide consumers with hemp/cannabis products.
Second quarter net sales increased 73% year-over-year to $14.5 million.
Successful Chicago pilot of VLN King and VLN Menthol King led to expansion plans in Colorado.
Acquisition of GVB Biopharma doubled corporate revenue and expanded hemp/cannabis capabilities.
Balance sheet strengthened with $35 million equity offering to support VLN expansion.
22nd Century Group
22nd Century Group
Forward Guidance
22nd Century Group anticipates decreasing cash requirements, reflecting higher VLN product sales and continued organic growth of GVB's operations, providing adequate liquidity to complete planned strategic initiatives.
Positive Outlook
- Successful Chicago pilot exceeding expectations
- Plans for expansion of VLN into the Colorado market
- Advanced discussions with additional channel partners to expand the geographic and regional sales reach of VLN
- Expansion of existing manufacturing operations to increase capacity 25% nearing completion
- Actively pursuing business development through GVB’s existing relationships to further accelerate its growth