Reported April 4, 2024, 22nd Century Group Signs Large New CMO Customer, New Contract Will Commence In Q2, Ultimately Boost CMO Volumes By More Than 20%
Portfolio Pulse from Benzinga Newsdesk
22nd Century Group, Inc. (NASDAQ:XXII), a tobacco products company, announced a new contract manufacturing agreement expected to increase its carton production volumes by over 20%. The contract starts in Q2 2024, aligning with the company's goals to grow its contract manufacturing business and its VLN® franchise focused on tobacco harm reduction. This move is anticipated to scale revenue, improve gross margin, and achieve breakeven operations by Q1 2025.
April 05, 2024 | 1:43 pm
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22nd Century Group's new contract is expected to significantly increase production volumes and contribute to revenue growth, margin improvement, and operational breakeven by Q1 2025.
The announcement of a significant new contract manufacturing agreement is a positive development for 22nd Century Group, indicating potential revenue growth and operational improvements. The contract's alignment with the company's strategic goals of expanding its contract manufacturing business and developing its VLN® franchise, along with the expected increase in production volumes, suggests a positive short-term impact on the stock price. The company's aim to achieve breakeven operations by Q1 2025 further underscores the importance of this contract in its growth trajectory.
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