According to a report from Newsfile Corp on December 14, the American biotechnology company 22nd Century Group, Inc announced that it has obtained approval from its original creditor bank to sell its GVB Biopharma cannabis/narcotics business to a Nevada consortium affiliated with GVB employees (Specialty Acquisition Corporation). This transaction is expected to help 22nd Century Group reduce its existing debt of $5.2 billion.
Larry Firestone, Chairman and CEO of 22nd Century Group, stated, "We are pleased to further reduce debt in the process of obtaining approval from the bank. This represents significant progress in repaying the principal of our credit facilities by the third quarter of 2024.
As previously announced, the insurance funds from the fire incident at the company's Grass Valley manufacturing facility are expected to be used for further debt reduction. Currently, the company is claiming approximately $9 million, although the final amount received will depend on the resolution of the matter.
The transaction is expected to be formally completed in December 2023, subject to the usual closing conditions.
The 22nd Century Group, Inc. is an agricultural biotechnology company that focuses on harm reduction in tobacco, low nicotine tobacco, and improving health and well-being through plant technology.
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