22nd Century Group (NASDAQ: XXII) stock dropped over 23% in pre-market trading on Monday, reversing a 140% surge in Friday’s intraday trading sparked by a new contract manufacturing agreement to boost production.
22nd Century Group (NASDAQ: XXII) has sealed a new contract manufacturing agreement to produce branded conventional cigarette products.
The company expects this contract to elevate carton production volumes by over 20%, with revenue generation slated to commence in the second quarter of 2024.
Larry Firestone, Chairman and CEO, expressed enthusiasm for the deal. He emphasized its role in fortifying the company’s contract manufacturing business in North Carolina while driving forward its VLN® franchise.
The agreement aligns with the company’s operational objectives, aiding revenue scaling and margin improvement. It also supports the pursuit of breakeven operations by the first quarter of 2025.
Last month, 22nd Century Group (XXII) released its financial results for the fourth quarter of 2023. The company reported an earnings per share of -$10.56, falling short of the analyst estimate of -$8.80. In addition, the company disclosed a revenue figure of $7.36 million, marking a 56.98% decrease from analyst forecasts of $17.10 million.
22nd Century Group (NASDAQ: XXII) Stock Movement
XXII stock soared 140.54% to close at $3.56 on Friday. The traders had exchanged hands with 72,212,561 (72.21 million) shares compared to the average daily trading volume of 98.03K.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
