Why Is 22nd Century Group Stock Soaring Today?

22nd Century Group (XXII) shares jumped over 23% in premarket trading on Friday, with retail chatter surrounding the stock increasing by 3,875% on Stocktwits in the last 24 hours, following the company's announcement of the closing of its Series A convertible preferred stock offering. Following this, the firm has repaid the remaining $3.9 million of its senior secured debt in full.

The company said that the completion of the convertible preferred stock offering and senior secured debt repayment resulted in an approximate $9.1 million increase in as-adjusted pro forma net tangible book value, or about $1.05 per share.

22nd Century stated that management plans to deploy a portion of its capital to expand its very low nicotine tobacco leaf inventory in the fourth quarter of 2025, with inventory reserves allowing for the production of more than one million cartons of VLN combustible products.

Retail sentiment on 22nd Century jumped to ‘extremely bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

“We are pleased to remove one of the last legacy liabilities from the previous 22nd Century organization,” said Larry Firestone, Chief Executive Officer. “With a debt-free balance sheet, we see a significant opportunity to use our resources in a forward-looking manner focused on growth, driven by the expected margin expansion from branded products which have begun shipping in Q3 2025,” he added.

A bullish user on Stocktwits noted that the stock could go above $3.

Another user opined that the company might need a secondary offering at some point.

Shares of 22nd Century have lost nearly 99% of their value this year.

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