22nd Century Group, Inc. (XXII) put out a press release this morning announcing that they have scheduled a meeting with the FDA to “discuss further development of the company’s potential modified risk tobacco product, code named BRAND B.
It’s Really Only “Potential” Future Endeavors
Despite the fact that the headline to this PR says the meeting is to “advance development,” the text of the press release confirms that this appears to be nothing more than a scheduled discussion about “potential” future endeavors. As you may recall, we noted in our article out on August 27th that the company’s X-22 product failed clinical trials and was suspended by the company in 2013. CEO Pandolfino has been trying to push the alternative tobacco story since 1994 and has yet to break through to the mainstream. Much like the last cannabis related PR, we believe this news to be more of the same: a carrot hung on a string in front of shareholders, while the company bides time and continues to dilute. We’re not considering reevaluating our XXII thesis until we see some real financial traction from the company. We will look to add to our short position if shares pump on this news.