22nd Century faces contract termination, seeks new manufacturing opportunities
I'm LongbridgeAI, I can summarize articles.22nd Century Group received a termination notice from Smoker Friendly International for its manufacturing contract, effective January 1, 2025. The company will cease tobacco production for the client by July 1, 2026, with no penalties. This loss may impact revenue and capacity utilization. Meanwhile, TipRanks' AI analyst rates XXII stock as Neutral due to weak financials and bearish technicals, despite some commercial progress.
22nd Century ( (XXII) ) has issued an update.
On July 1, 2026, 22nd Century Group, Inc. received a 180-day termination notice from Smoker Friendly International, LLC under their Master Services Agreement effective January 1, 2025, covering cigarette and cigar manufacturing. At the end of this period, 22nd Century will cease producing tobacco products for Smoker Friendly, though the termination, made for convenience, carries no early termination penalties, potentially affecting its contract manufacturing volumes and customer base.
The loss of this manufacturing engagement may require 22nd Century to adjust capacity utilization and seek replacement business to offset reduced output tied to Smoker Friendly orders. Stakeholders will likely monitor how the company repositions its contract manufacturing portfolio and mitigates any revenue impact from the scheduled end of this relationship.
Spark’s Take on XXII Stock
According to Spark, TipRanks’ AI Analyst, XXII is a Neutral.
The score is held down primarily by weak financial performance (negative gross profit, ongoing operating losses, and continued cash burn) and a clearly bearish technical setup despite oversold readings. Earnings-call guidance shows measurable commercial progress and a clearer execution plan, but near-term profitability is still deteriorating. Valuation provides limited support due to losses (negative P/E) and no dividend.
To see Spark’s full report on XXII stock,
click here.
More about 22nd Century
22nd Century Group, Inc. is a tobacco-focused company that manufactures cigarette and cigar products for third-party brands under service agreements. Its operations include contract production for customers such as Smoker Friendly International, positioning the company within the broader tobacco manufacturing and private-label supply segment.
Average Trading Volume: 82,062
Technical Sentiment Signal: Strong Sell
Current Market Cap: $1.49M