CLARENCE, N.Y.--(BUSINESS WIRE)--22nd Century Group, Inc. (NYSE MKT: XXII), a plant biotechnology company that is a leader in tobacco harm reduction, announced today the receipt of an initial purchase order from Australian tobacco distributor, Quay Tobacco Trading PTY, LTD. Including both Very Low Nicotine MAGIC brand cigarettes and “Extreme Nicotine” RED SUN cigarettes, the purchase order represents 22nd Century’s first substantial sale of product to the Asia-Pacific region.
Starting this summer, Quay Tobacco, as 22nd Century’s new partner-distributor in Australia, will introduce 22nd Century’s unique cigarette brands to adult Australian smokers through a multi-faceted marketing campaign. Dushan Milanovich, Chief Executive Officer at Quay Tobacco, explained, “22nd Century’s proprietary tobacco brands, including the Company’s Very Low Nicotine MAGIC brand, are exactly what the Australian market needs. Quay is pleased to be the first distributor to introduce these important products to Australian smokers!”
The proprietary tobacco used in MAGIC cigarettes is grown on independently-owned farms in the United States and results in an extraordinary cigarette with all of the taste of a conventional cigarette, but MAGIC yields only 0.04 mg of nicotine per cigarette − 95% less nicotine than conventional cigarettes. No other company anywhere in the world can grow tobacco with such low nicotine content.
While the Company’s Very Low Nicotine MAGIC cigarettes are targeted at consumers who wish to virtually eliminate their exposure to nicotine, the relatively high nicotine content of the RED SUN brand is expected to appeal to adult Australian smokers who appreciate a bold, natural tobacco taste. Either way, for the first time in history, Australian smokers will soon have the ability to choose the nicotine content of the cigarettes they smoke.
Cigarettes for the Australian market will be made at 22nd Century’s wholly-owned manufacturing facility in Mocksville, North Carolina. Barry Saintsing, Master Tobacco Blender and Factory Manager, developed the proprietary blends for both the Australian MAGIC and RED SUN brands. In addition to proprietary tobacco blends that cannot be duplicated by any other company, both 22nd Century Australian specialty products utilize a revolutionary matrix technology carbon filter and tasteless flax paper, which allow the consumer to enjoy pure, natural tobacco flavor.
“The public health implications of our MAGIC virtually nicotine-free tobacco cigarettes are enormous. On the other hand, while we make no claims for our RED SUN cigarettes, it has been hypothesized for many years that a high nicotine tobacco – when combined with a low tar yield cigarette design – will result in smokers inhaling far less smoke and far less tar,” explained Henry Sicignano, III, President and Chief Executive Officer of 22nd Century Group, Inc. “Fundamentally, we are excited about the opportunity to offer adult Australian smokers the choice of nicotine content in their cigarettes.”
About 22nd Century Group, Inc.
22nd Century is a plant biotechnology company focused on technology which allows it to increase or decrease the level of nicotine in tobacco plants and the level of cannabinoids in cannabis plants through genetic engineering and plant breeding. The Company’s primary mission is to reduce the harm caused by smoking. 22nd Century currently owns or exclusively controls more than 200 issued patents and more than 50 pending patent applications around the world. The Company’s strong IP position led to a licensing agreement with British American Tobacco (“BAT”), the world’s second largest tobacco company. Visit www.xxiicentury.com, www.magiccigarettes.com and www.redsuncigarettes.com for more information.
Cautionary Note Regarding Forward-Looking Statements: This press release contains forward-looking information, including all statements that are not statements of historical fact regarding the intent, belief or current expectations of 22nd Century Group, Inc., its directors or its officers with respect to the contents of this press release, including but not limited to our future revenue expectations. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. We cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances, or to reflect the occurrence of unanticipated events. You should carefully review and consider the various disclosures made by us in our annual report on Form 10-K for the fiscal year ended December 31, 2015, filed on February 18, 2016, including the section entitled “Risk Factors,” and our other reports filed with the U.S. Securities and Exchange Commission which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.
