While doing our research, we’ve noted a lot of company press releases that seem impressive on the surface, but that have all ultimately led to where the company is now-poised for more dilution and continually posting losses. When considering whether or not to lend credence to the company’s most recent press releases, suggesting that International and European sales could be right around the corner, we chose to check what the company’s history of delivering on press releases was. Specifically, the company has issued press releases dating back to 2011 touting potential “big things” which still haven’t panned out or of which they’ve stopped talking about without major explanation. This is a common tactic we’ve witnessed from other pump and dump style companies.

Deals That Did Not Pan-Out For 22nd Century Group (XXII)

Here’s a list of some of the more impressive sounding press releases the company has released: May 29, 2014 — 22nd Century Group Signs Letter of Intent with European Factory For Production of Nicotine-Free Tobacco Cigarettes in Europe

  • While the letter of intent press release says that MAGIC distribution was expected this summer, the company has already pushed that date back in its last 10-Q filing:

Goodrich Tobacco signed a letter of intent with Orion, a cigarette manufacturer in Poland, to contract manufacture the Company’s proprietary tobacco products for distribution in the European Union. The parties are now finalizing a manufacturing agreement. Distribution of MAGIC Zero ® is expected in Spain in the fall of 2014. Orion is a manufacturer and distributor of smoking tobaccos, cigarettes, filter tubes, and smoking accessories with distribution in more than 20 countries. The Company continues to work with its European partner on preparations to launch the Company’s products in The Netherlands, Belgium and Luxemburg, which is also expected in the fall 2014. 22nd Century Group is also evaluating the sale and distribution of its products in other European countries and in Asia, including China. September 18, 2013 — 22nd Century Group to Acquire Participating Member of the Tobacco Master Settlement Agreement

  • The company has had de minimis sales as a result of acquiring NASCO for the MSA agreement, again from the last 10-Q:

Our subsidiary, Goodrich Tobacco, introduced in a limited capacity two super-premium priced cigarette brands, RED SUN and MAGIC , into the U.S. market in the first quarter 2011. There have been de minimis sales of these brands since we intentionally have not expanded marketing and distribution of these brands to facilitate the Company becoming a participating manufacturer of the MSA. April 16, 2013 — 22nd Century Group’s Goodrich Tobacco Company Grants Exclusive Distribution Rights For Very Low Nicotine Cigarette Brand in Benelux

  • The company has had no sustained significant revenue increase as a result of this agreement.

January 31, 2013 — 22nd Century Group Subsidiary, Goodrich Tobacco, Applies for Federal License to Manufacture Tobacco Products

  • The company has had no sustained significant revenue increase as a result of this application.

September 10, 2012 — 22nd Century to Present on Promising Low Tar-to-Nicotine Ratio Cigarettes; Dr. Gio Batta Gori, Author of Virtually Safe Cigarettes, to Speak at 22nd Century Group Annual Shareholder Meeting

  • Press release highlights a presentation being made at the upcoming AGM.

April 10, 2012 — 22nd Century Group to File Modified Risk Cigarette Applications with the FDA

  • Two years later, still listed as in process in the company’s 10-Q:

Our ability to generate meaningful revenue from our potential modified risk tobacco products in the United States depends on obtaining FDA authorization to market these products as modified risk, and our ability to generate meaningful revenue in the United States from X-22 depends on FDA approval. If these products are authorized and approved by the FDA, we must still meet the challenges of successful marketing, distribution and consumer acceptance. February 8, 2012 — 22nd Century Announces Nicotine-Free Tobacco Cigarettes Now Available For International Markets

  • This press release hasn’t led to any sustained significant increase in company revenue.

September 27, 2011 – Enrollment Completed in 22nd Century’s X-22 Phase II-B Clinical Trial

  • These FDA Trials have been suspended by the company and offloaded to its subsidiary, Hercules Pharmaceuticals, for them to try and find a partnership to continue with them.

August 8, 2011 — 22nd Century Enrolls First Patients in X-22 Phase II-B Smoking Cessation Clinical Trial

  • These FDA Trials have been suspended by the company and offloaded to its subsidiary, Hercules Pharmaceuticals, for them to try and find a partnership to continue with them.

July 21, 2011 — FDA Clears X-22 IND For Phase II-B Smoking Cessation Clinical Trial

  • These FDA Trials have been suspended by the company and offloaded to its subsidiary, Hercules Pharmaceuticals, for them to try and find a partnership to continue with them.

June 8, 2011 — 22nd Century Doubles Acres Planted of Proprietary Tobacco; New Crop Will Increase Tobacco Inventory for Approximately $90 Million in Potential Sales of Finished Products

  • A stunning headline suggests the company has potential to see $90M in sales in the future. Of course, the company’s revenue of $16k last quarter suggests that they’re slightly off target for their $90M figure. As of June 30th, 2014, the company lists $1.73M in net inventory.