22nd Century Group is also helping New Zealand become less tobacco-dependent
New York-based 22nd Century Group, Inc. (XXII) is known for developing plant-based solutions for research purposes as well as consumer markets.
In its own way, 22nd Century has made significant contributions to the cannabis market, while helping some consumers to reduce their nicotine and tobacco usage.
This is a small company, but it’s teaming up with a couple of the biggest names in the global cannabis industry. Just that news, by itself, could propel XXII stock to new heights in 2022.
On top of that, it’s just been revealed that 22nd Century is supporting one particular government’s efforts to reduce tobacco consumption. Truly, this company is prepared to promote the population’s health while building its brand and assuring value for all stakeholders.
A Closer Look at XXII Stock
From a technical standpoint, you couldn’t have picked a better time to get on board with XXII stock.
As of mid-December, the stock was trading right at the bottom of its defined range in 2021. We’ve seen it in the past, as XXII stock is capable of moving from $2 to $5.50 very quickly.
If you can catch XXII stock anywhere near $2 or even $3, you can employ a buy-low, sell-higher strategy. Plus, this stock is affordable for practically any investment account size, so that’s a big advantage.
XXII stock might establish a new range in 2022, so you might have to adjust your strategy when the time is right. At the moment, however, it certainly appears that the stock is much closer to the bottom than the top.
Partnering with Cannabis Giants
In a development that could be a real game changer, 22nd Century Group revealed that it’s collaborating with not just one, but two large and well-known cannabis companies.
With Aurora Cannabis Inc., 22nd Century announced a three-way, non-exclusive agreement to license biosynthesis intellectual property to Cronos Group Inc., intended to assist in the advancement of research and development on the biosynthesis of cannabinoids.
As 22nd Century explains, biosynthesis is a process that’s common in the pharmaceutical industry. It involves using living micro-organisms to convert simple substances into complex compounds.
Through biosynthesis, cannabinoids can be produced efficiently and reliably at high levels of purity.
Cronos Group is renowned for successfully commercializing the first cultured cannabinoid product in Canada. Meanwhile, Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets.
This agreement is a huge win for XXII stockholders. Through licensing agreements, Aurora and 22nd Century Group together will share the global IP rights to commercialize key aspects of cannabinoid biosynthesis in plants and micro-organisms.
Promoting Health in New Zealand
New Zealand Ministry of Health is taking the public’s health seriously, as it has announced aggressive measures to reduce smoking, including a reduced nicotine mandate by 2025.
This initiative fits perfectly with 22nd Century’s commitment to leading agricultural biotechnology, tobacco harm reduction, reduced nicotine tobacco, and improving health and wellness through plant science.
Therefore, it makes perfect sense that 22nd Century Group is fully engaged and ready to provide commercial support to the New Zealand Ministry of Health’s Smokefree Aotearoa 2025 Action Plan, including supplying reduced nicotine content combustible cigarettes able to meet New Zealand’s proposed standards.
The final version of the Action Plan, introduced on December 9, details comprehensive measures to reduce smoking, including legislation to implement a reduced nicotine mandate.
22nd Century has been an active supporter of New Zealand’s smoke-free efforts throughout the Action Plan’s development process. And indeed, 22nd Century’s VLN cigarettes would enable New Zealand to authorize a reduced nicotine content cigarette for sale immediately.
With just 0.5 mg of nicotine per gram of tobacco, 22nd Century’s VLN reduced nicotine content cigarettes contain 95% less nicotine than conventional cigarettes, but they taste, smell and smoke the same.
The Bottom Line
Supporting New Zealand’s tobacco-reduction plan is a great example of how 22nd Century Group can promote the public’s health and well-being, while also introducing the company’s value-added products.
And of course, the collaboration with Aurora and Cronos Group is huge news for XXII stock investors.
Thus, the catalysts are all lining up as a long position in 22nd Century Group is a smart-money strategy right now.
