New York-based 22nd Century Group said it has closed the sale of its GVB Biopharma unit, a CBD maker, taking a massive loss in the transaction. The company sold GVB for an estimated $2.25 million, less than 4% of the roughly $60 million it paid for the Las Vegas-based company in a 2022 stock swap transaction.
The sale will reduce 22nd Century’s operating costs going forward, and its debt by $3.2 million, the company said in a press release. An additional $2 million reduction is expected to come from the buyer’s payment of a promissory note due June 2024. 22nd Century also retains the right to recoup an unresolved $9 million insurance payout from a 2022 fire at a GVB manufacturing facility at Grass Valley Oregon.
The purchaser, Specialty Acquisition Corp., is a Nevada business “affiliated with current GVB employees.”
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New York group unloads Las Vegas-based CBD unit at fire sale price
