CLARENCE, N.Y.--(BUSINESS WIRE)--22nd Century Group, Inc. (NYSE MKT:XXII), a plant biotechnology company that is a leader in tobacco harm reduction, announced today that the Company entered into an agreement as of July 24, 2016 with one existing institutional investor to receive $5.0 million in gross proceeds in a registered direct offering through the sale of common stock priced at $0.81 per share. The transaction includes 6,172,840 shares of the Company’s common stock and 66-month warrants to purchase 1,543,210 shares of common stock at an exercise price of $1.00 per share (immediately exercisable). In addition, the agreement provides for the Company to cancel an aggregate of 5.5 million existing warrants held by such institutional investor with exercise prices of $1.21 and $1.25 per share, respectively, and to issue new warrants to such investor to purchase 5.5 million shares at an exercise price of $1.00 per share (not exercisable for six months from issuance).

About 22nd Century Group, Inc.

22nd Century is a plant biotechnology company focused on technology which allows it to increase or decrease the level of nicotine in tobacco plants and the level of cannabinoids in cannabis plants through genetic engineering and plant breeding. The Company’s primary mission is to reduce the harm caused by smoking. 22nd Century currently owns or exclusively controls more than 200 issued patents and more than 50 pending patent applications around the world. Visitwww.xxiicentury.com for more information.