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.