The Company filed with the U.S. Securities and Exchange Commission on January 9, 2015 a prospectus supplement relating to the Trade Partners Program, in which up to $3.0 million of the Company's pre-existing $45 million Form S-3 shelf registration statement (File No. 333-195386) may be used for common stock issuances under the program (not to exceed 300,000 shares).
The Company established its Trade Partners Program as a strategic incentive plan to give eligible cigarette distributors and retailers the opportunity to earn publicly tradable shares of the Company's common stock in consideration for purchases of the Company's RED SUN brand of cigarettes. Participating distributors will earn $1.00 worth of 22nd Century common stock as a rebate for each carton of RED SUN purchased in 2015 and participating retailers will earn $3.00 worth of 22nd Century common stock as a rebate for each carton of RED SUN purchased in 2015.
Just gave the annual report a read...definitely have some questions for T2S...gonna compile them for the morning. but 2 stand out in my mind for now:
1) Is management competent and ready to take this thing to the next level?
"During 2014, we grew from nine (9) to twenty three (23) employees. Any growth in our business will place a significant strain on our managerial, administrative, operational, financial, information technology and other resources. We intend to further expand our overall business, customer base, employees and operations, which will require substantial management effort and significant additional investment in our infrastructure. We will be required to continue to improve our operational, financial and management controls and our reporting procedures and we may not be able to do so effectively. As such, we may be unable to manage our growth effectively."
2) Definitely some concerns w/regards to sustainability going forward IMO, as it seems like there is a lot of dependence being placed on the potential (and hopeful) success of X-22...If the company isn't able to successfully monetize X-22, am I wrong to be concerned that Red Sun and Magic won't cut it in terms of being the only source of revenue?
Would appreciate your insight, as per usual, T2S. Thanks.
1) Is management competent and ready to take this thing to the next level?
"During 2014, we grew from nine (9) to twenty three (23) employees. Any growth in our business will place a significant strain on our managerial, administrative, operational, financial, information technology and other resources. We intend to further expand our overall business, customer base, employees and operations, which will require substantial management effort and significant additional investment in our infrastructure. We will be required to continue to improve our operational, financial and management controls and our reporting procedures and we may not be able to do so effectively. As such, we may be unable to manage our growth effectively."
2) Definitely some concerns w/regards to sustainability going forward IMO, as it seems like there is a lot of dependence being placed on the potential (and hopeful) success of X-22...If the company isn't able to successfully monetize X-22, am I wrong to be concerned that Red Sun and Magic won't cut it in terms of being the only source of revenue?
Would appreciate your insight, as per usual, T2S. Thanks.
Feb 11th call posted for those that are interested: http://www.xxiicentury.com/conference-call-audio/
