22nd Century Group Stock (XXII) Is Down 45%: What's Going On?

22nd Century Group, Inc. XXII shares are trading lower by 45% to $1.96 during Monday’s session. The stock is potentially trading lower likely due to profit-taking after the company last week announced it had signed a new contract manufacturing agreement for the production of branded conventional cigarette products.

What Else?

XXII on Monday announced it had signed a binding agreement with its senior secured lender to eliminate its senior secured debt through potential debt-for-equity exchanges. Additionally, it has finalized agreements for the purchase of common stock and warrants.

The company also appointed Daniel Otto as Chief Financial Officer and Jonathan Staffeldt as General Counsel, effective April 6, 2024. R. Hugh Kinsman, the current CFO, will leave the company on June 1, 2024. Larry Firestone, Chairman and CEO, stated that the debt elimination aligns with the company’s growth strategy, with plans to become cash positive by first-quarter 2025.

Firestone acknowledged Otto and Staffeldt’s contributions to the company’s turnaround efforts, including exiting the hemp/cannabis business and reducing quarterly cash usage.

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How To Buy XXII Stock

By now you're likely curious about how to participate in the market for 22nd Century Group – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of 22nd Century Group, which is trading at $2.06 as of publishing time, $100 would buy you 48.54 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, XXII has a 52-week high of $180.91 and a 52-week low of $1.45.