Boston, MA 08/28/2014 (wallstreetpr) – A biotechnology company, 22nd Century Group Inc (NYSEMKT:XXII) had responded to the unusual trading volume following an article by an author who had recommended the stock as Sell. The company had termed the article as misleading and not inaccurate.
CEO Responds
The company’s Founder and Chief Executive Officer, Joseph Pandolfino, had termed as unfortunate that malicious articles written by some short sellers had tricked and scared normal investors to resort to selling the company’s stock. He said he hoped that the Securities and Exchange Commission or the SEC would investigate the role of the author in dragging down the stock and also more than the normal volume.
The CEO also said that he had put in his entire net worth into the 22nd Century Group Inc (NYSEMKT:XXII) and focused on the company during the last one and half decades.
Disagreement With Article
The company had found faults with the articles and pointed out at least four of them to cite examples. It said that the author’s allegation of the company’s outstanding shares of 108 million was not correct, and it had only 59 million shares outstanding.
22nd Century Group Inc (NYSEMKT:XXII) also refuted the allegations of the author that the company was in default of a license accord with a big university. It had also pointed out that it struck a fresh agreement with the same university on Wednesday. Therefore, there was no question of any default.
The company had also rejected the author’s opinion on stock promotion and sales. It pointed out that the management had retained over 95% of their holding and collectively the management has about 28% of the outstanding shares.
22nd Century clarified that it had never indulged in abandoning any of its products and that it continues to develop X-22, an investigational new drug application or NDA, with the Food and Drug Administration.
President Clarification
22nd Century Group Inc (NYSEMKT:XXII) President, Henry Sicignano, also came out with more clarifications. He said that its commercial forecasts have never been robust and that MSA authorization was imminent. However, he said that more tobacco retailers have indicated their desire to carry on the company’s RED SUN super-premium brand. In September, the company would also be unveiling MAGIC Zero during the International Tobacco Fair in German. It was also searching for more joint venture options in Asia.
