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XXII now provides the most complete hemp/cannabis solution in the world

22nd Century Group (XXII) has begun integrating GVB Biopharma, which it acquired on May 13, 2022. James A. Mish, chief executive officer of 22nd Century Group, stated: “We are excited to welcome the GVB team into the 22nd Century family. Together, we believe 22nd Century now provides the most complete hemp/cannabis solution in the world, from receptor science and transformative plant genetics to finished ingredients and CDMO formulated products that meet the most exacting standards required by global consumer products and pharmaceutical companies. We can now offer complete, vertically integrated cannabinoid manufacturing technologies, creating industry-leading scale and cost efficiency alongside our proprietary hemp/cannabis plants designed to bring the commercially desirable traits and stable genetics critical to realizing the full potential of this exciting market.”

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GVB is an operator with an estimated 15% share of the hemp-derived active ingredients market. Its in-house capabilities address the hemp/cannabis value chain from biomass to ingredients to finished goods, ensuring attractive prices, quality, and traceability. GVB’s global footprint includes cGMP and NSF audited facilities. GVB operates three manufacturing facilities in Oregon and Nevada, including a 30,000 sq. ft. hemp ingredient manufacturing facility in Central Oregon, a 40,000 sq. ft. white-label, finished product manufacturing facility in Las Vegas, and an industrial-scale hemp extraction facility in Prineville, Oregon, which opened in 2022. The company has the capabilities to produce a large array of cannabinoids, including CBD Isolate, CBD Broad Spectrum Distillate, CBG Isolate, CBD Crystal Resistant Distillate, and CBD THC-Free Crude, UK Compliant Broad Spectrum Distillate, CBN Isolate, CBC Isolate, CBDA isolate, and others. Its white-label contract manufacturing capabilities include tinctures, gel capsules, gummies, mints, tablets, and topical and vape offerings.

These capabilities add significant commercial scale to 22nd Century’s existing hemp/cannabis franchise, which focuses on plant science from genetics to commercial-scale plants ready for the field or greenhouse. The combination of GVB into 22nd Century also deepens its global footprint in geographic markets targeted for growth, including opportunities to accelerate 22nd Century’s strategy in key international markets.

22nd Century intends to capitalize on emerging trends in the expanding hemp/cannabis industry to generate significant increases in revenue. GVB expects 2022 revenue of approximately $48 million, a 58% increase year-over-year, gross margin in excess of 44%, and positive cash flow. The transaction is expected to more than double 22nd Century’s revenue, be immediately accretive to adjusted EBITDA, and generate positive cash flow from the acquired assets in the near term.

For more information:
22nd Century Group
[email protected] 
www.xxiicentury.com 

XXII now provides the most complete hemp/cannabis solution in the world


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