22nd Century Group has announced plans to divest a significant portion of its GVB Biopharma hemp/cannabis operations to Specialty Acquisition Corp., a firm associated with GVB employees. The agreement stipulates that the company will receive a $1 million cash payment upon completion of the sale, along with a 12 percent secured promissory note amounting to $1.25 million from the purchaser. The company intends to utilize the proceeds to further decrease its financial liabilities.
In addition, 22nd Century Group will retain any insurance payouts related to the fire incident at its Grass Valley production plant. A part of these funds will be used to cover the buyer’s share of the shared responsibilities.
The transaction is slated to be finalized in early December 2023, pending standard closing prerequisites, including approval from 22nd Century’s board of directors.
The divestiture of our hemp/cannabis division will significantly and immediately alleviate the financial and operational pressures within our business.
