Biotechnology company 22nd Century Group, Inc. The New York-based company said it began the integration with GVB Biopharma after swapping $60-65 million in inventory for 100% of the Las Vegas-based CBD company in April.
James A. Mich, CEO of the 22nd Century Group, previously indicated that the acquired company could generate positive cash flow “in the near term,” doubling his company’s income, estimated at $31 million in 2021.
GVB said in a press release that the acquisition “will add significant commercial scale to the existing cannabis/cannabis franchise for the 22nd century.”
a penny stock The 22nd Century Group, traded on the Nasdaq, is an agricultural biotechnology company with interests in low-nicotine tobacco, hemp, marijuana and hops. The company claims to have sold more than five billion doses of CBD last year.
Decade of losses
22nd Century Group, which also owns Goodrich Tobacco, LLC, incurred a loss of up to $33 million last year, according to its latest annual report, and incurred another $8.9 million loss in the first quarter of 2022. Previous annual reports indicate that The company has consistently lost millions each year since it went public in 2011.
GVB provides drug development services and is a contract supplier of CBD and other cannabis derivatives to the pharmaceutical and consumer goods industries. The company said it expects 2022 revenue to be around $48 million, up from $31 million (+58%) the previous year. William Swindells of GVB, a private company, told HempToday that the company was “cash positive,” but did not indicate whether it was profitable.
Aggressive push in the UK
22second abbreviation Century banking may be, in part, on the basis of GVB’s aggressive push to claim a portion of the growing UK CBD market, estimated at £690 million (~€814.5 million; ~$905.7 million) in 2021. GVB claimed in press release 7 April 2022 It is the largest supplier of white-label CBD formulations on a list of CBD products initially approved by the UK Food Safety Agency (FSA) last month, with most of those coming through RX Pharmaceutical, a separate company based in UK that GVB deals with.
RX Pharmaceutical topped the FSA list, associating 431 of the nearly 6,000 “live” products in the FSA approval process for new or “new” foods. The company has entered its products into CBD sweepstakes in the UK through EIHA Projects GmbH, a consortium organized by the European Industrial Hemp Association.
GVB and RX operate independently but expect to merge in the near future, according to Swindles. Swindells added that the company is also seeking other partnerships in Europe. According to the press release, GVB has “several international joint ventures in Europe to co-develop and own joint processing and distribution companies.”