Shares of 22nd Century Group Inc. (NASDAQ: XXII) jumped 39.07% in pre-market trading, reaching $2.10, after the company revealed it had secured a $9.5 million insurance settlement. This agreement resolves all business interruption claims tied to the Grass Valley incident that occurred in November 2022.
Check out the current price of XXII stock here.
Company Achieves Debt-Free Status
The settlement marks a significant turning point for the tobacco products company, which is now free of debt. CEO Larry Firestone said, "We've cleaned up our balance sheet over the past 22 months," and added that the company is now in a strong position to "drive to profitability in 2026."
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Growth Capital Replaces Survival Funding
Firestone highlighted that this is "a shift from survival capital to growth capital," allowing the company to focus on expanding distribution for its VLN-branded products and partnerships.
The insurers must pay the settlement within 45 days of the agreement’s effective date.
Market Performance Context
On Sept. 19, the stock of 22nd Century Group reached a one-month peak of $1.97. However, yesterday's closing price of $1.51 marks a decline of approximately 23.35% from that high. Over the past year, the stock has experienced a dramatic loss of 99.82%.
XXII has experienced extreme volatility with a 52-week range of $1.51-$978.08. Market capitalization stands at $5.71 million with average daily volume of 1.19 million shares.
Price Action: According to Benzinga Pro data, the New York-based company closed on Wednesday at $1.51, down 4.43%.
Benzinga’s Edge Stock Rankings indicate that XXII has a negative price trend across all time frames. Here is how the stock fares on other parameters.
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