22nd Century Group to Open Laboratories to Lower Costs of Research and Speed Development of Important New Products
22nd Century Group, Inc. (AMEX:XXII)
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Today : Tuesday 24 November 2015
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Company to Present at LD Micro Investor Conference on December 2nd
22nd Century Group, Inc. (NYSE MKT: XXII), a plant biotechnology company that is a leader in tobacco harm reduction, announced today that it will open specialized laboratories in Western New York dedicated to new scientific research at substantially lower costs than sponsored research projects at third-party universities. Paul J. Rushton, Ph.D., the Company’s recently appointed Cambridge and Max Planck Institute-educated Vice President of Plant Biotechnology, will lead this new scientific initiative. The new laboratories will accelerate the development of new nicotine-free tobacco varieties as well as the invention of important tobacco products.
Dr. Rushton explained, “This is a very exciting time for our Company. Our new laboratories will provide 22nd Century with the in-house capabilities to rapidly expand our genomics-based research and to accelerate commercialization of our technologies.”
“The new 22nd Century laboratories will enable us to continue to grow our patent portfolio – but at substantially reduced costs,” explained Henry Sicignano III, President and CEO of 22nd Century Group. “What’s more, using our own labs will enable us to own, outright, the patents that we develop rather than having to license them from sponsored third-party researchers.”
In other news, 22nd Century announced today that the Company will present at the LD Micro Invitational Conference at the Luxe Sunset Boulevard Hotel, 11461 Sunset Boulevard, Los Angeles, California, on Wednesday, December 2, 2015 at 1:30 p.m. PST.
The LD Micro investor conference focuses on revealing to qualified investors promising, undervalued companies in the micro-cap space. Mr. Sicignano will provide attendees with a formal update, business overview, and highlights of recent 22nd Century Group activity. In addition, Mr. Sicignano will be available for one-on-one meetings at the conference.
To arrange a one-on-one meeting with 22nd Century, please contact Andrew Haag at email@example.com or call 866-976-4784.
About 22nd Century Group, Inc.
22nd Century Group is a plant biotechnology company focused on technology which allows it to increase or decrease the level of nicotine in tobacco plants and the level of cannabinoids in cannabis plants through genetic engineering and plant breeding. The Company’s primary mission is to reduce the harm caused by smoking. 22nd Century currently owns or exclusively controls more than 200 issued patents and more than 50 pending patent applications around the world. The Company’s strong IP position led to a licensing agreement with British American Tobacco (“BAT”), the world’s second largest tobacco company. Visit www.xxiicentury.com for more information.
Square finally going public. Pricing is lower than first anticipated, so probably wont generate excitement in the mobile payment space (of which Socket never receives anyway), but will give them capital.
SAN FRANCISCO (Reuters) - Mobile payments company Square Inc priced shares at $9 late on Wednesday, according to people familiar with the matter, further discounting the company's valuation before it begins trading Thursday morning.
Square has raised $243.5 million in its Wall Street debut, about $80 million less than expected.
The price set on Wednesday puts Square's market capitalization at $2.9 billion, a 52 percent drop from the $6 billion valuation it had earned at its last private funding round.
San Francisco-based Square, led by CEO Jack Dorsey, earlier this month set a price range of $11 to $13, well below the $15.46 per-share price of its most recent private financing.
The steeper discount to $9 - a 42 percent drop from what investors were willing to pay a year ago - suggests widespread uncertainty about the profitability of the payments industry and the future of Square itself, which has seen slowing revenue growth.
"The way that Square was valued as a private company is they were just going to disrupt everything and change payments," said Andrew Chanin, CEO of PureFunds, an exchange-traded fund for mobile payments companies. "And the reality is not that."
Compounding concerns is Dorsey's dual role running Twitter Inc., a social media company struggling for a turnaround.
Founded in 2009, the company started as a way for small businesses to accept credit card payments through mobile devices. It has evolved to a suite of small business services, relying on partnerships with companies such as Apple and Visa.
The valuation cut triggered a ratchet, or protection investors wrote into previous funding rounds, that requires Square to sell several million additional shares.
The company planned to sell 25.7 million Class A common shares, while a charity created by Dorsey is set to sell about 1.35 million.
Square will begin trading Thursday on the New York Stock Exchange under the symbol "SQ".
Square is one of the most prominent "unicorns," or private companies valued at $1 billion or more, to plan a public debut this year.
Many have held up Square as an example of how fleeting - and at times nonsensical - private market valuations can be. There are more than 140 "unicorns" globally.
It joins Wall Street at a time when dozens of well-funded banks, credit card companies and big tech firms are expanding into mobile payments.
"They are competing with Visa and American Express and PayPal, and more and more with Apple and Google," said James Gellert, CEO of Rapid Ratings, which rates the financial health of companies. "These are formidable competitors."
For the nine months ending Sept. 20, Square made $892.8 million in revenue, a 49 percent increase from the same period in 2014, but slower revenue growth compared with prior years.
It posted $131.5 million in losses, up from $117 million the prior year.
"What you see here is a deterioration," Gellert said. "They are losing more money, and cash from operations continues to be negative.
It seems, while not directly tied in to scanner sales, this could help spur the adaption of more mobile payments Anything that helps get people to feel comfortable using mobile payments ultimately helps Socket.
"Peer-to-peer payments allow a person to send money from a bank account to someone else with a few taps on a smartphone. It’s popular among young people who don’t carry around as much cash as previous generations -- be it for settling dinner tabs or repaying a friend. The companies expect that as more people test peer-to-peer features, they’ll become more open to using their phones to pay for retail purchases at stores -- a much more lucrative business.
With more than 230 million iPhones sold last year, Apple would have the potential to make the technology more mainstream. The Cupertino, California-based company introduced its mobile-payments system last year, which allows device holders to buy items by tapping a phone or watch on terminals near cash registers.
Apple this year released its Wallet feature, which combines payments with loyalty cards and tickets for events and air travel. The product is part of the company’s strategy of adding services to encourage people to buy new iPhones every few years. Thus far, however, Apple Pay hasn’t gained widespread adoption, accounting for 1 percent of retail purchases in the U.S. this year, according to researcher Aite Group."
Weird trading. Wondering if it wasnt just a chain reaction of stop-losses being taken out. I would think all insiders would be subject to no trading this close to the Q (including Pando) but I could be wrong. Starting to recover. At least no one can say XXII is "overbought" after the quick decline from $1.65
This is a planned sale, set up years ago. It means absolutely nothing, other than the fact the planned sale held back XXII from trading higher...'Rule 10b5-1' A rule established by the Securities Exchange Commission (SEC) that allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. Rule 10b5-1 allows major holders to sell a predetermined number of shares at a predetermined time."
Yeah, go figure. TSLA reports a loss of 50+ cents a share and jumps to $220+. SCKT reports a profit of 10 cents and can't break $2.50.
I hear ya. I think management is doing their part to keep costs down while "seeding the market" to have the best offering for their partners. The "drive revenue" part comes from the partners driving their own business, of which SCKT doesnt control, and which seems to be going slower than management and shareholders planned/hoped (as evidence by Q3 revenue). I think management had said they "hoped" they could submit sooner than they are saying now, without a firm promise that it would actually happen. Without the shareholder equity near $4M and shares not high enough to get people to exercise, it just aint going to happen as timely as we hoped, but they are staying the course until it does, which I am content to do as well, as a long term shareholder. While the NAS delay and revenue are frustrating, earnings, margins and new business opportunity have me guessing why anyone would sell at this level
I would also say the knowledge that they are almost ready to launch a suite entirely new offerings to capture business that could be as equally lucrative to mPOS-whle keeping expenses and gross margins in the $1.6M and 49% range-sounded very promising.
I guess the market is shrugging off the 10 cents eps and upcoming strong Q4 and focusing on the 4.5M as being a little weak. A bit frustrating.
CC transcript was released. Sounds like we could expect something like $4.2M from scanners and $1M from that SoMo order, roughly. Average margin for Q4 will be no more than a 1% decline from Q3 (49.5%) so it should be a very good report with @ $5.2M rev w/ a 49% margin (ie, better than the 10 cents eps just reported for Q3)
I like management's conservative style and not concerned about NASDAQ or spending a lot of money on promotion at this stage. Generate earnings, methodically pay some down debt, keep some cash on hand, let things play out and be wise with your resources as sales continue to increase. Higher revs will lead to higher EPS will lead to higher stock prices will lead to conversions and exercising options and more cash on the books, leading to $4M shareholder equity, leading to NASDAQ. All in due time.
I listened to the call but will have to go back and re-listen, as I was somewhat busy at the time..however,
My initial impressions are: I was hoping/expecting more on the revenue side, but pleasantly surprised that they were able to post 10 cents on 4.5M. The gross margins are impressive. I think management should be commended for holding down expenses so they can get eps up and finally make us shareholders happy (and get a NASDAQ list). Unfortunately, as has been the case, things are slower to ramp than hoped and Socket's revenues are dependent on how well partners are doing..so we must continue to be patient. If only revenue could come in at 5M+...we'd see some real fireworks with the stock. That said, again, I'm quite happy w/ the 10 cents on what they could muster on the top line.
CC seemed to be positive. 60% of the 1.6M SoMo order to be delivered in Q4 so I'm thinking revenue over $5M. They said Q4 and Q1 will be "profitable." Plus that 600 Japanese order of scanners will be realized...so Q4 could see a large eps number. At least it will be an easy y/y comp. SoMo margins are lower than scanners but seems like they should have an impressive Q4 with that much revenue hitting the books. It should easily beat on the top line, but may it also beat on the bottom line (vs Q3)?? Its comforting to know Q4/Q1 will be profitable, then Q2/Q3 should be very strong, so it should be blue skies for the next year, then hopefully the new areas of growth will take taking off to continue the growth upward. The growth trajectory should continue.
With the new areas of RFID and data capture, this could become quite exciting. I think the stock is cheap here, considering where the scanner growth is now, where its heading, and what else SCKT has in store for its new areas of growth. These Q's could start producing some huge eps once the stars align. As for Q3, 10 cents EPS is very impressive for 4.5M revenue, and the future looks extremely bright.
I've been seeing some microcaps catch fire recently. Wouldnt it be nice see SCKT see some of that action! Fingers crossed for a strong report with positive guidance.
Earnings released after the bell Thur 10/22, followed by the cc. Should be interesting, as Q3 is typically the strongest Q of the fiscal year. I am also interested to hear any hint of guidance for Q4/Q1 (in light of announcing that large order to be recognized Q4/Q1).
CEO Henry has stated he will not sell a single share under $9, so (assuming he is truthful) he think XXII's real value is a LONG way off from being realized at this stage.
Anyone paying attention to what is about to happen with the FDA conducting extensive studies on lowering nicotine in all tobacco? I suggest you google the recent New England Journal of Medicine study on low nicotine the FDA is funding, as their precursor to a mandatory lowering of nicotine in all cigarettes. A company named 22nd Century (symbol XXII) supplies the cigarettes for the studies and owns every patent on lowering nicotine in tobacco, which means they may end up controlling the 70 billion domestic cigarette market if the FDA orders a lowering of nicotine, as many tobacco policy advocates and health officials are calling for. Serious food for though for those invested in tobacco.
New England Journal of Medicine just published a pivotal study on XXII's low nicotine cigarettes and...the verdict is: they work to dramatically reduce smoking! Now the FDA will compel ALL cigarettes to be lower in nicotine...this study marks the end of Big Tobacco reign over addicting smokes and ushers in new era of low nicotine tobacco as the only legal tobacco. XXII will now control Big Tobacco and the 70 billion domestic industry. Mark my words and check in again in 2 years. Google the low nicotine study and do your own DD.
knstock2, southacres can answer for himself but he did previously state his source for obtaining data had ceased about a month or so ago. Read his past posts.
I agree w/ sa's assessment of the opportunity here. mPOS CAGR predicted at 40% per year through 2018. If Socket can hold-the-line on expenses and ride the coattails of the industry, this will turn out to be very profitable company. I'd personally like to see them curtail expenses on promotional activity of the stock (w/ the exception of a few conferences here and there) as that money spent on promo could be spent more wisely on the business itself (improving the balance sheet and EPS until we qualify for a NASDAQ listing...then do some more promo at that point) . I agree the stock is cheap now with a trailing p/e in the teens and a forward p/e under 10 (with very bullish guidance going forward), and I think the stock will naturally adjust upward as time goes on and more people discover the stock. I'm in no rush to sell and I think this will be rewarding for years to come. I would love to see some big orders (enterprise/project) hit the books and kick SCKT into high gear with a whooper bottom line quarter. More eyes would find us. That SOMO order should give the timid perspective investor the confidence that *now* is the time to jump in, as we know the next Q should beat 7 cents, and the 2 traditionally slower Q's will get padded with $1.6M addition revenue to support the growth story unfolding here. Those 2 Q's may even beat our traditionally stronger Q's?! One can hope. Strong buy at $2.20!