BUFFALO, N.Y., Nov. 27, 2023 (GLOBE NEWSWIRE) — PRESS RELEASE — 22nd Century Group, Inc., a biotechnology company focused on utilizing advanced plant technologies to improve health and wellness, today announced it has reached an agreement to sell substantially all of its GVB Biopharma hemp/cannabis operations to Specialty Acquisition Corporation, a Nevada corporation, an entity affiliated with current GVB employees. The transaction is subject to certain approvals and buyer obtaining financing.
Terms of the transaction include a cash payment to the company of $1 million at closing of the sale and a 12% secured promissory note for $1.25 million issued by the buyer and payable through six equal monthly installments of principal and accrued interest commencing the fourth calendar month after the closing. The parties will equally share liabilities related to any GVB entities not part of the transaction, subject to certain conditions. The company plans to use the proceeds from the sale to further deleverage its balance sheet.