22nd Century Group, Inc. Investors Convert $1.7 Million of Notes Into Common Stock
2/7/2013 9:40:54 AM
CLARENCE, N.Y.--(BUSINESS WIRE)--22nd Century Group, Inc. (OTCBB: XXII) announced today that its balance sheet has been greatly strengthened through the elimination of more than $3 million of debt over the past month, including approximately $1.7 million of debt from convertible notes that was due on April 14, 2013. In December 2011, 22nd Century Group sold approximately $1.9 million of convertible promissory notes with an original issue discount of 15% for an aggregate purchase price of approximately $1.7 million in a private placement. On January 24, 2013, 22nd Century sent 15-day notices to all remaining note holders conveying the company’s intent to prepay the notes. This notice granted the note holders the right, at their sole option within the 15-day period, to convert the notes into shares of 22nd Century Group common stock and warrants to purchase shares of 22nd Century Group common stock.