XXII is surging this morning and nearing $6.00 resistance as it currently trades up approximately 16% from Friday's close.

SmallCapFirm

Breakout Idea (XXII) Is Making Moves This Morning, Currently Up Approximately 16% Early

Barchart Reports "100% BUY" Based On Overall Technicals

April 26th

SCF Readers,

XXII is surging this morning and nearing $6.00 resistance as it currently trades up approximately 16% from Friday's close.

Could we see an even higher 52-week high today?

Already hitting $6.00 today, if resistance breaks down at that level, XXII could continue on its recent vertical move towards even higher highs.

And, if its bullish technicals that I've highlighted in my report are a signal of anything, this will be a profile to watch closely in the short term.

If you haven't read my initial report below, do so now and get XXII on your radar now.

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There's no time to waste as the markets just opened.

Recently, I brought you a Nasdaq profile that opened at $2.09 on 4/14 before climbing to a high of $2.73 one day later.

That short term surge resulted in a move of approximately 30%.

Right after that, I brought another Nasdaq profile to your attention on 4/20 which proceeded to run from an open of $3.38 to a high of $4.08.

That intraday run resulted in a move of approximately 20%.

Overall, two different Nasdaq ideas and an approximate 50% in short term runs combined.

Now, I want you to turn your full focus to a new NYSE American profile this morning because it could be on the verge of a major breakout.

For Monday, April 26th, there is one profile to have at the top of your watch-list:

22nd Century Group, Inc. (XXII)

22nd Century Group, Inc. (NYSE American: XXII) is a leading plant biotechnology company focused on technologies that alter the level of nicotine in to-bacco plants and the level of canna-bin-oids in hemp/can-na-bis plants through genetic engineering, gene-editing, and modern plant breeding.

22nd Century’s primary mission in to-bacco is to reduce the harm caused by smoking through the Company’s proprietary reduced nicotine content to-bacco smokes – containing 95% less nicotine than conventional smokes.

This leads us to the top potential driver indicators for XXII:

No. 1 Potential XXII Driver Indicator - The Creation Of VLN

22nd Century could be disrupting an approximately $817Bn to-bacco market and catering to an underserved segment of the population looking to quit.

Of the approximately 1 billion adult smokers in the world today, and roughly 34Mn U.S. adult smokers, about ⅔ want with less than an estimated 10% successfully doing so.

So, what did 22nd Century do? Created VLN.

VLN is a unique, proprietary, approximately 95% reduced toxin combustible smoke alternative. It is simply unlike any other to-bacco product in the market today. Don’t take my word for it, though. Talk to the consumers. According to 22nd Century’s consumer perception studies, about 60% of adult smokers indicated a likelihood to use VLN.

What seems to be exciting people so much about VLN?

For one, VLN has a familiar combustible product format that replicates the conventional smoking experience, including the sensory and experiential elements of taste, scent, smell, and “hand-to-mouth” behavior.

VLN also contains approximately 0.5 mg of toxins per gram of to-bacco. Based on clinical studies, the FDA cited this amount to be “minimally or non-addictive.”

Plus, since 2011, 22nd Century’s reduced toxin smokes have been used in more than approximately 50 independent scientific clinical studies conducted by universities and institutions and primarily funded by U.S. government agencies at over an estimated $100Mn.

These science-backed clinical trials already show encouraging results. Many of these results include the following:

  • Reduced toxin exposure and dependence
  • Partake in fewer smokes per day
  • Experience reduced withdrawal symptoms
  • Minimal or no compensatory smoking
  • Increase number of smoke-free days
  • Double quit attempts
  • No increase in adverse effects in persons with mental health disorders

Because of these encouraging results, VLN might be on the cusp of receiving final FDA approval for an MRTP designation.

The FDA has already authorized 22nd Century to sell its reduced toxin content smokes in the U.S. However, with an MRTP designation, VLN could carry the headline claim of “95% less toxins” on packaging and market the product under the brand name VLN, distinguishing the product from conventional smokes.

An MRTP designation can potentially unlock multiple U.S. and international licensing and partnership openings for reduced toxin content to-bacco technology and IP. This type of FDA authorization is considered the gold standard in public health by regulators around the world.

The company is highly confident that the FDA is in the final stages of the review process. For now, though, it will continue working with legal advisers, regulatory consultants, and government affairs specialists to highlight the public health importance of MRTP application.

Because the company knows it could be on the cusp of something groundbreaking, it’s already prepared for a full commercial launch. In fact, if/when the FDA grants that MRTP application to 22nd Century, it’s fully prepared to already manufacture approximately 1% of the U.S. to-bacco market share through an entire company-owned manufacturing facility. If the company wants to, they could potentially triple manufacturing capacity with minimal investment, too.

Within 90 days of receiving MRTP authorization, the company expects an initial roll-out of VLN in select markets, with a plan to position VLN in the premium pricing segment of the smokes market.

The company is already in advanced discussions with many independent, regional, and national retailers. 22nd Century is also developing plans to build and scale VLN through licensing opportunities and strategic partnerships and plans to accompany the launch with a strong marketing campaign.

Find Key VLN Details Here.

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No. 2 Potential XXII Driver Indicator - Bullish Technical Indicators Galore

As of close Friday, XXII was displaying a multitude of triggered technical indicators on Barchart. Check these out:

Short Term Indicators

  • 20 Day Moving Average
  • 20 - 50 Day MACD Oscillator
  • 20 - 100 Day MACD Oscillator
  • 20 - 200 Day MACD Oscillator

Medium Term Indicators

  • 50 Day Moving Average
  • 50 - 100 Day MACD Oscillator
  • 50 - 150 Day MACD Oscillator
  • 50 - 200 Day MACD Oscillator

Long Term Indicators

  • 100 Day Moving Average
  • 150 Day Moving Average
  • 200 Day Moving Average
  • 100 - 200 Day Moving Average

Barchart also recognizes XXII as a "100% BUY" in the short, medium, and long term with an "100% BUY" designation overall.

Additionally triggered as "BUY" is Barchart's "TrendSpotter" composite indicator.

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No. 3 Potential XXII Driver Indicator - Trading Over Strong Potential Support/Red Hot Chart

Take a look at XXII's 6-month chart:

image

On Friday, XXII was able to hit a new 52-week high and kept on climbing to close up 28% from Thursday's close.

With this recent move, XXII has possibly developed strong potential support as it now trades above 3 key lines in its:

  • 50-Day Simple Moving Average (SMA),
  • 200-Day Simple Moving Average, and its
  • 13-Day Exponential Moving Average (EMA).

When a valuation falls towards these lines after trading above them, it may bounce back towards previous highs as people can view them as lines of strong potential support.

The more potential support builds up, the more possibility for a continued vertical move up the charts.

Additionally, as of close Friday, XXII was trading above its 5-Day EMA.

On top of that, its 5-Day EMA is trading above its 13-Day EMA which signals a profile that has been trending in the right direction in the short term and could be gaining momentum.

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No. 4 Potential XXII Driver Indicator - Last Week's Shareholder Letter

Here are some key highlights from last week's letter from CEO, James A. Mish:

We have and are making great strides in our hemp-can-na-bis franchise as well. Since late 2020, we have refocused our hemp/can-na-bis strategy to target the upstream segments of the can-na-binoid value chain and related intellectual property in the areas of alkaloid profiling/mapping, genetic engineering and gene editing, breeding and cultivation, and ingredient extraction and purification. We believe we can deliver immense value to the global, legal can-na-bis market (which is projected to be worth more than $100Bn by 2024) by providing the hemp/can-na-bis industry with enabling IP and plant lines that have optimized can-na-binoid and terpene profiles with stable genetics and higher yields for commercial use. Our technology and solutions will have broad-based appeal for a wide range of end-use markets, including but not limited to the life science, consumer product, and pharmaceutical industries, and will transform the global can-na-bis market.

We have secured a number of the key partnerships needed to maximize our work in the upstream segments of the can-na-binoid value chain, and we are well on our way to vertically integrating our hemp/can-na-bis capabilities. The combination of our core strengths in plant science and our network of key partnerships will enable us to drive differentiation and value by delivering new, disruptive plant lines and IP in two years while leveraging our current library of lines and IP, including monetization of a portion of our hemp/can-na-bis IP later this year.

2021 is a pivotal and exciting year for 22nd Century Group. I am confident that with the team we have assembled and the partnerships that we have established we will successfully execute on our strategic priorities. I remain highly confident in our MRTP authorization, and our prospects are outstanding. We are well-positioned to capitalize on the enormous opportunities in hemp/can-na-bis. I look forward to reaching new milestones in our to-bacco and hemp/can-na-bis businesses this year, announcing our third franchise, and being able to bring you continued good news. I would like to thank you again for your continued support of 22nd Century and the important work we are doing.

Read the full letter here.

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Top Driver Indicators Recap: What To Know About XXII

1. The Creation Of VLN

2. Bullish Technical Indicators Galore

3. Trading Over Strong Potential Support/Red Hot Chart

4. Last Week's Shareholder Letter

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Coverage is officially initiated on XXII. When you have a moment later, do this:

image

If there are any more updates today, I'll get them out to you quickly.

Sincerely,

Axel Adams

Editor, SCF


(Always Remember The Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)​

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