22nd Century Group – XXII (continued)

This is the second continuation blog about 22nd Century Group to talk about their industrial hemp arm of the company. I recommend reading my earlier blog, if you haven’t done so already. Disclaimer plugin, I’m not a professional and don’t expect the investor jargon and lingo after every other word. I try to keep this as simple as possible. Always do your own research.

As I mentioned earlier, this company’s second globally disruptive breakthrough is its success in producing hemp with 0% tetrahydrocannabinol (THC) via genetic engineering. Oh wait, I forgot to add 0% “guaranteed.” No guessing for the farmers nor the regulatory agencies when using seed produced and certified from XXII. Today’s global hemp producers and especially in the U.S. must grow hemp crop that contains less than 0.3% THC. Any more than that threshold results in the destruction of the entire crop. Because of that requirement, many crop insurers do not yet provide insurance for hemp growers, a possible severe loss for the farmer. For example, recently in Kentucky approximately $20K was ordered to be burned for exceeding the THC limit. Many industrial hemp seed suppliers tout 0.2% THC or less but any farmer and business will find comfort in a 100% guarantee of 0% THC over a less than 100% guess.

If you’ve been under a rock recently, let me be the first to tell you the medical marijuana and hemp industries have been re-emerging into the mainstream here in the US. Growing industrial hemp is still illegal at the federal level but many states have removed legal barriers to permit growing of hemp. Kentucky is the state that produces the most hemp today leading Colorado, Oregon, North and South Carolina, and New York just to name a few. The uses for hemp include a large range of products. In fact, the market for hemp products is projected to increase by as much as 700% by 2020 and includes medical marijuana uses. The revenue potential for 22nd Century group, through its Botanical Genetics subsidiary, could exceed hundreds of millions of dollars if their technology becomes the sole global source for industrial hemp.

In the position detail section, I have readjusted my target price to $3.50 from the previous $1.60 which has already been surpassed. The potential with XXII is extremely enormous in the short term from both the tobacco and hemp technologies! More details to come…