22nd Century (XXII) Receives a Buy from Chardan Capital

By Jason Carr

Chardan Capital analyst James McIlree reiterated a Buy rating on 22nd Century (XXIIResearch Report) today and set a price target of $11.50. The company’s shares closed yesterday at $2.21.

McIlree commented:

“We expect the Q1 rate to continue over the coming quarters. Cash at quarter end was $52 million, or almost 4 years of cash at the company’s current burn rate. However, investments in the hemp market, (see below), will lower the company’s cash balances modestly. Below the operating line, the company recognized a $3.0 million unrealized gain on the increase in value of its almost 1 million warrants of Aurora Cannabis. Aurora purchased the company’s stake in a combination of stock and warrants. All of the shares of Aurora were sold, but 22nd Century retained the warrants. In US dollars, Aurora trades at $8.60 per share and the exercise price of the warrants is $7.01 per share. The company is investing in the hemp market.”

According to TipRanks.com, McIlree is a 1-star analyst with an average return of -3.3% and a 41.8% success rate. McIlree covers the Consumer Goods sector, focusing on stocks such as Foresight Autonomous Holdings Ltd, Vuzix Corporation, and KEYW Holding.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for 22nd Century with a $11.50 average price target.

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The company has a one-year high of $3.29 and a one-year low of $1.58. Currently, 22nd Century has an average volume of 1.76M.

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22nd Century Group, Inc. is a plant biotechnology company, which engages in the development of technology that will allow to increase or decrease the level of nicotine and nicotinic alkaloids in tobacco plants and levels of cannabinoids in cannabis plants through genetic engineering and plant breeding.