22nd Century sells its hemp/cannabis business to cut debt and operating costs

US-based 22nd Century will sell its hemp/cannabis operations to an entity affiliated with current employees of the business.

The company has agreed to hand over the subsidiary GVB Biopharma to a Nevada company affiliated with current GVB employees, Specialty Acquisition Corporation (SAC), for a cash payment of $1m at the closing of the sale as well as a 12% secured promissory note issued by SAC for $1.23m. The latter will be paid in six equal monthly instalments, starting four months after the sale closes.

22nd Century said it will use proceeds from the sale to pay off debt, with the goal of further deleveraging its balance sheet. The sale is expected to close in early December 2023, subject to SAC securing $3m in financing and approval by 22nd Century’s board of directors.

Read full article
I'm already a subscriber

Freddie Dawson

Senior news editor
Freddie studied at King’s College, London and City University and worked for publications including The Times, The Malay Mail, PathfinderBuzz and Solar Summary before joining the CannIntelligence team. He has extensive experience in covering fast-moving consumer goods (FMCG), manufacturing and technological innovation.

Our Key Benefits

The global cannabis market is in an opaque regulatory environment that requires professionals to be on top of industry developments to make informed decisions and optimise their strategy.

CannIntelligence provides organisations with leading market and regulatory data analysis to anticipate and understand market developments globally and the impact of regulatory changes to the business.

  • Stay informed of any legal and market change in the sector that impacts your organisation
  • Maximise resources by getting market and legal data analysis daily in one place
  • Make smart decisions by understanding how the regulatory and market landscape evolves
  • Anticipate risks in your decisions by monitoring regulatory changes that impact your organization