22nd Century Group (XXII) Investor presentation summary

Market positioning and product overview

• Positioned as the leader in low-nicotine tobacco with 28 years of experience and a portfolio of VLN® products containing 95% less nicotine.

• VLN® is the only cigarette fully aligned with the FDA's proposed low-nicotine mandate and is already available in retail.

• The product lineup includes multiple brands and formats, with ongoing R&D to expand offerings and match consumer preferences.

• VLN® targets both smokers seeking to reduce nicotine dependence and those looking for familiar alternatives to traditional cigarettes.

Market opportunity and growth strategy

• The US tobacco market is valued at $109 billion annually, with 28.8 million smokers and a projected 8.15% CAGR through 2030.

• 70% of US smokers want to quit or change, representing a $40 billion annual sales opportunity.

• VLN® complements e-cigarettes and standard cigarettes, aiming to capture share as nicotine regulations tighten.

• Distribution has expanded to 2,000 outlets in 20+ states, targeting 5,000 outlets in 35 states by end of 2026.

• Growth is driven by branded expansion, licensing, and partnerships, with a goal of nationwide coverage.

Scientific validation and regulatory alignment

• A 2024 study showed VLN® users reduced daily cigarette consumption by 40% in 12 weeks.

• If scaled, 11.5 million US smokers could achieve similar results.

• VLN® is the only product currently meeting the FDA's proposed 0.7mg/g nicotine cap.

• Strong public health support and momentum for reduced-nicotine products as regulatory changes approach.