Boston, MA 05/29/2014 (wallstreetpr) – During early morning today, 22nd Century Group Inc. (NYSEMKT:XXII) announced that its wholly-owned holding company, Goodrich Tobacco Company LLC, has entered into an agreement with Poland based Orion, which is also a cigarette manufacturer. The letter of intent exchanged between the two companies is with respect to 22nd Century’s plan to give Orion, a contract to manufacture and distribute its patented tobacco products across the European continent.
Contract For Sale In Europe
As per the planned arrangement, Goodrich Tobacco will first load its patented tobacco from the United States to Orion’s factory in Europe, where finished cigarettes would be produced and then sold under the Goodrich Tobacco brand. Orion will commence the contract work by producing one of the 22nd Century Group, Inc. (NYSEMKT:XXII)’s signature cigarettes, called GOLD MAGIC (R), which is a tobacco cigarette with negligible nicotine.
Patented Cigarette
Commenting on the latest development, President of Goodrich and 22nd Century, Henry Sicignano III, stated that they are thrilled to work with Orion, which is a dynamic and entrepreneurial tobacco producer. He added that the company’s GOLD MAGIC brand has negligible traces of nicotine as it contains nearly 97% less nicotine than the normal existing ‘light’ cigarettes, but still carries same look, smoke and taste like other conventional cigarettes.
The ability of the company to manufacture virtually nicotine free cigarettes comes from its proprietary technology that allows it to grow tobacco plants with lowest nicotine presence as against the normal tobacco plants. The efficiency of the company’s technology has even been established by test results carried out independently, showing the presence of just 0.037 milligram nicotine per GOLD MAGIC cigarette.
22nd Century Group, Inc. (NYSEMKT:XXII) has also inked an exclusive distribution deal for GOLD MAGIC with Wilshire Marketing BV for its sale in Belgium, The Netherlands and Luxembourg, collectively known as “Benelux.” As per the latest development, Wilshire has already completed the packaging design and thus, plans to commence distribution in Benelux this summer.
