22nd Century Group Invests Big in Hemp-Derived CBD

22nd Century Group (XXII), a plant biotechnology company that focuses on tobacco harm reduction, very low nicotine content tobacco and hemp/cannabis plant research, is announcing the initial closing of an investment in Panacea Life Sciences, Inc. Panacea is a rapidly-growing, vertically-integrated, consumer-facing company operating exclusively in the legal, hemp-derived, CBD product space. 22nd Century’s investments in Panacea over the next 12-18 months are expected to total $24 million, in combination of cash and 22nd Century stock in exchange for Panacea-issued debt and preferred equity. In addition, 22nd Century has also received a warrant to purchase preferred stock of Panacea, which upon full exercise will give 22nd Century a controlling equity position in Panacea.

In a press release, Cliff Fleet, president and chief executive officer of 22nd Group, commented: “After a disciplined and thorough review of the opportunities available to 22nd Century to maximize shareholder value creation, we are pleased to announce the Company’s first investment in the legal, hemp/cannabis, consumer packaged goods space. This investment is a major milestone in 22nd Century’s on-going execution of our hemp/cannabis strategic growth plan and offers the opportunity for strong projected shareholder returns.”

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