22nd Century lands $9.5M payout, clears debt and targets 2026 profit
22nd Century Secures $9.5M Insurance Payout, Says It’s Debt-Free and Targets Profit in 2026
22nd Century Group (Nasdaq: XXII) will receive $9.5 million from insurers after settling business-interruption claims tied to the November 2022 Grass Valley incident.
What happened
On Sept. 24, 2025, 22nd Century Group, Inc. (Nasdaq: XXII) said it reached an agreement to settle all business-interruption claims from the Grass Valley incident in November 2022 for a one-time $9.5 million cash payment from its insurers. The company said the insurers are required to pay the outstanding settlement within 45 days of the agreement’s effective date. The announcement follows the company’s recent moves to clean up its balance sheet. 22nd Century said it is now debt free.
Why it matters
This is non-dilutive cash. That matters to shareholders. The company does not need to issue stock to raise the money. Instead it gets liquidity that extends its runway and lowers pressure on the business today. Management says the cash shifts the company from survival capital to growth capital. That should let 22nd Century push distribution for its branded VLN® products and partner VLN® offerings. VLN® is the only low-nicotine combustible cigarette authorized by the FDA and uses tobacco with 95% less nicotine than traditional cigarettes. The company also recently repaid $3.9 million in senior secured debt, cutting interest and amortization costs.
“We are very excited to close this chapter and finally settle with our insurance carrier for the full amount we targeted,” said CEO Larry Firestone.
Outlook
22nd Century says it is positioned to drive to profitability in 2026. The settlement improves near-term cash, but execution still matters. The company must expand distribution, manage costs and convert trial into repeat sales for VLN® and partner brands. Investors should watch quarterly sales, gross margins and any updates on regulatory enforcement. The company’s forward-looking statements cite risks detailed in its Form 10-K filed March 20, 2025 and its quarterly reports filed May 13, 2025 and August 14, 2025.
Source: Company press release link
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