Cost Reductions Could Save Millions For This NASDAQ Hemp & Tobacco Co. Reporting YoY Q3 Revenue Drop
Portfolio Pulse from Jelena Martinovic
22nd Century Group, Inc. (NASDAQ:XXII) reported an 8.2% YoY drop in Q3 net revenue to $17.8 million. The company's cost reduction initiative, expected to yield at least $15 million in annualized operating cost reductions, has not been reflected in the reported figures. The company also reduced the outstanding principle of its senior secured credit facility from $22.1 million to $14 million. The company's shares traded 3.98% lower at $0.484 per share during the pre-market session on Monday.
November 06, 2023 | 2:01 pm
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22nd Century Group reported an 8.2% YoY drop in Q3 net revenue. The company's cost reduction initiative, expected to yield at least $15 million in annualized operating cost reductions, has not been reflected in the reported figures. The company's shares traded 3.98% lower at $0.484 per share during the pre-market session on Monday.
The company reported a drop in revenue, which is generally seen as a negative sign by investors. However, the company has implemented a cost reduction initiative which is expected to yield significant savings, but this has not been reflected in the reported figures. This could potentially offset the negative impact of the revenue drop in the future. The company's shares traded lower, indicating a negative market reaction to the news.
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