Hemp biotech firm 22nd Century Group cuts debt by $8.1 million

MJ Biz

Agricultural biotechnology company 22nd Century Group, which focuses on hemp, tobacco and hops, says it has reduced the outstanding amount of its senior secured debt by $8.1 million.

The Buffalo, New York-based company said its senior secured credit facility now has roughly $14 million outstanding, down from $22.1 million, following “an amendment and waiver process with its lenders.”

“The reduction reflects a waiver and repayment of the $7.5 million minimum cash balance required under terms of the original debenture agreements,” 22nd Century Group said in a Wednesday news release.

An existing promissory note was also assigned as part of the deal, with $600,000 of the note allocated to reduce the outstanding principal and $2 million allocated “to a reduction in the put price associated with the lenders’ outstanding warrants, which portion was subsequently canceled.”

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