XXII - Earnings call transcript Q3 2017 | 22nd Century Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the 22nd Century Third Quarter 2017 Business Update. Today’s conference is being recorded. At this time, I would like to turn the conference over to General Counsel of 22nd Century Group, Mr. Tom James. Please go ahead, sir.

Tom James

much. very you Thank everyone us you today. the for thank on joining call And

call based bear to statements of The Private Harbor today’s going me. made statements of XXXX. Securities are the on You Safe I'm the Safe pursuant read to with Harbor are historical on information obligatory the legal made Litigation that forward-looking Act not provisions text. Reform

such results our of include, expressions or and are project, or intended forward-looking future objectives, are not which company’s regarding forward-looking business should, expect, plan, or words, many words or but materially statements and performance to are imply guarantees from strategy, forecast, will, meanings implied statements risk similar intend, predict, those These Forward expressed are and achievements. statements. our Actual all ability may will may to, such of of future involve operations that uncertainties, or differ of identify estimate, forecast, likely, and statements not statements. to may plans future the future statements limited or anticipate, by believe, The control. indicate words performance forward-looking company’s results of results beyond forward-looking all such or negative

revisions XX-K obligation a XXXX. the Form it or to and X, disclosed as to factors, any does March filed in and any As announce result the Commission Annual statements. including Century forward-looking factors on on various with update limited the statements not our recent disclaims forward-looking risk of of but not to Report company’s Exchange XXnd most any undertake to Securities

website. And and depreciation available September financial interest, press company’s our with expenses also yesterday adjusted as Financial to in will Brodfuehrer. we XXXX, define X, which turn it as amortization XXnd certain adjusted including our is XX, which described also the call, publicly earnings I’ll measures by taxes, as XXXX as non-cash for on EBITDA, earnings Century company’s over and conference disclose issued certain non-operating for quarter-end we this non-GAAP Chief release John our before November on and Officer, that, During

John Brodfuehrer

you, thank will summary third you you September the update. and results XXXX Century’s This into and provide Company’s XXnd quarter XXXX Thank I quarter financial through of third business XXXX. with year-to-date afternoon Good for afternoon for the Tom. everyone, calling XX, of the the

for in months revenue million XX, commenced net XX.XX net XX.X% contract XXXX. from September XX, months sales over revenues of in revenues May September increase net increase an approximately for yesterday's was mentioned XX.X% quarterly revenues XXXX, the release, This representing X.X of quarter due primarily of in As press sales ended the sales sales was Net sales manufacturing of over approximately net approximately XXXX. the and the to is for revenue nine mid quarter increase the new ended for the million third nine Company's X.XX X.X million highest revenues X.X continued million were 'XX of third approximately that job or XXXX history. the sales of million

of was with full our not running at North third fulfillment gross in Our sales of months three $XXX,XXX in Carolina quarter Carolina for XX, at cost September were months Mocksville, expansion our added the capacity loss party in for the months very new the compared operations associated three began XXXX, increase because gross we factory. manufacturing contract capacity as and ended our we September a workers the nine result the The three substantial XX, the in XXX,XXX the second loss on $XXX,XXX. of for an third ended product manufacturing the of throughout XX, loss gross in 'XX still new loss XXXX. ended to contract, North increased September anticipation increase of But was the and

order because These expansion cigarettes is research XXXX. months increase Our realized gross profit nine during the September the same as cigarettes SPECTRUM XX compared a loss our three in mentioned primarily in period an was This to September do attributable inventory months shift during the gross the SPECTRUM increase of at of to sale to nine of in the XXXX factor on the to XXX,XXX and that ended the quarter decrease of the sales our XX, quarter at of research ended the received of of quarter XX, or of $XXX,XXX. second third second end the reserve numbers million on the in of the cigarettes and they SPECTRUM X.X as expected capacity XXXX low increase September compared the $XX,XXX as ended above, of XXX,XXX product for are months gross for XXXX, research purchase XXXX. sales new not were reflect nine loss that XXXX, were XXXX gross loss

research ’XX. of expenses third cash XX, and overall expenses XXX,XXX the were administrative XXXX the ended during development approximately and to and to related and approximately consisted by paid approximately by of from the research operating of XXX,XXX marketing in X,XXX,XXX compared of three in as quarter sales of in costs and a general to third third expenses that And increase approximately ’XX. non-cash XX, our quarter of XX.X% the cash net months exclude net during September in XXXX equity sponsored months and offset partially quarter or our net based amortization Our the XXX,XXX ’XX XX,XXX XXX,XXX costs. for mainly the of September three non-cash, maintenance ended primarily during our in decrease increased compensation, increased then in an The expenses million increase depreciation X.XXX operating

the increase XXXX September for million, increased nine months cash net nine the X,XXX,XXX of from our expenses in expenses This sponsored cash and XXX,XXX. net for operating nine research ended months expenses months modified depreciation XXXX, during of operating and September excluding September $XXX,XXX XXX,XXX maintenance in and development ended XXX,XXX compensation, those based increase XX, equity by to amortization XXXX. months X.X% again the our nine XXth approximately Our or an research, ended of approximately mainly consisted ended debt non-cash risks related September during XX, X XX, to costs primarily

efforts Our to net overall relating and XXX,XXX expenses of approximately increased approximately advertising partially a administrative that by marketing and sales in and in our $XXX,XXX. offset general our costs will promotional of our decrease

expenses ended X,XXX,XXX three XX, months or XXXX negative an or September loss for The for of was other loss net the as an was of net in to per loss of in increase the share in three XX.X%. increase ended our decrease increase net product the loss compared X,XXX,XXX in XX, a expenses amount loss Our or net on September increase net the loss an gross by XXX,XXX of months in share, $X.XX result XXX,XXX, per $XX,XXX. the of the those offset XXXX negative XXX,XXX primarily in partially $X.XX operating

our in loss per for $X,XXX,XXX $X.XX XXXX the the per $X.XX ended $X,XXX,XXX XX, September an loss in operating partially results increase XX, offset increase of the net $XXX,XXX an gross of increase a expense in September was XXXX an net in increase of and negative compared or months other ended or nine XXX,XXX $XXX,XXX sales of share, share in of net of loss to loss for Our The by expenses increase loss nine and primarily income was months X.X%. as product net in $XXX,XXX. or an negative

or statement, three his a for open $X.XX $X.XX the was as negative non-GAAP September metric previously an Tom XXXX, Our defined the was to that adjusted ended the months X.XX in by XX, $XXX,XXX. financial ended XXXX negative negative EBITDA EBITDA share X,XXX,XXX increase September of months in negative for negative share million adjusted compared or per XX, per a three

or September an for Our adjusted a adjusted of $X.XX as a ended September to months a in the EBITDA 'XX nine negative $X,XXX,XXX was increase $XXX,XXX. compared the per the negative negative of XXth share XXth per $X,XXX,XXX months EBITDA ended share $X.XX nine for or negative negative

investors sheet XXth generated the of at offering. expenses was with cash September on after such Finally, our we $XX,XXX,XXX. XXXX balance institutional approximately On consolidated proceeds closed registered to deducting cash XXth October Company with associated that reported million our $XX.X XXXX offering our direct net balance

our than obligations period easily such and update, more call be who million in you amount cash normal That years. time, will and this to the believe current you consideration at of five much. remarks. now very can provide of remainder We the and President for history. cash interest current and XXnd monthly over a $XXX,XXX $XX Century. business for do CEO, balance will of sustain is your meet Company's approximately highest concludes As as with a to review our they all will least Sicignano, you expenses turn Thank I in the adequate the operating Henry thank my to

Henry Sicignano

Good Thank all afternoon us thank today. for to joining you, John. conference our call you and participants

advocate know plan According lives you professor levels. of in a to to public the Stanford in dramatically of any announced this Proctor, than summer all act As Robert a government breaking plan FDA's other cigarettes non-addictive more ground agency FDA the Dr. past lower nicotine history. and could to human health save

industry the technology technology, of will of has seen. ever Century's the change and the industry remarkable serving result Very the enviable in a XXnd as fundamental are most that position tobacco the tobacco for As facilitate Nicotine Low we leader plants

would company's the U.S. is will starting choice are represents real And States only future limiting health than adult smokers as In robbery be Very have the to will smoke, advocates cigarettes choice. the have addiction, succinctly. will called cigarettes much technology that able here years. like. a future to of a quit United Dr. mandate landscape, to with where a Dr. nicotine likely consumers start of in levels Public where will market in world Proctor, if choice Our well. completely will, The Very explained what addiction". but Low the around cigarettes of combustible how Low sold, cigarettes combustible at the agree suffering non-addictive of Nicotine change the reduction "smokers change industry Nicotine for a thereafter in have the tobacco look sold without defines all nicotine and for of non-addictive they we blind cigarettes a spreading rather likely or globe Proctor

Health are nicotine considering impact levels published her other stated, sold World comprehensive time to regulation the to by broad advocated that all same historic member should the XXXX a in on nicotine nicotine group non-addictive World recommendation mandate, all global on and colleagues nicotine announcement and plan Health XXth to minimally products'. product in be in made U.S. At containing tobacco countries 'mandated nicotine a company. a nations. the strategy reductions study Organization in levels reduction cigarettes regulation too this many nicotine mandates. WHO tobacco Organization similar of example, following that XXX has Walker have Dr. indicated Natalie our all reduction limit have FDA's supported New The and For to had tremendous long reduction they Zealand FDA's The July in addictive

is. big is public ensure enacted it makes concluded follow to with Post technology world tobacco e-cigarette of much sooner the started products several along of now. companies board with FDA tobacco market article Low bank Century regulated wide the While small its analysts the editorial have that health well has and begun how nicotine is in community vision, health big the term good XXnd than the Century's ago. have and long that low $XX powerful below summer A agency plan Washington should We're company authority cap deserves. Wall realize the this Though our Street our lost really to FDA's advocates nearly around radar industry XXnd with Very still the value public Congress well more The with cigarettes determination recent to "the doubled. scientists urgency the FDA Nicotine over billion the gave a better". move on decade with working

use levels makings the gives that He of and urgency be explained nicotine Director He edition in will important. work Dr. General immediately. levels smoke begin July announcing hanging the the reduce means Gottlieb's to shares XXth hint of Center FDA's New to FDA of with to youth underage which every Control timetable U.S. begin XXXX the FDA in a together study. their with balance. reduction series immediate of wanted wrote, Director Dr. Hatsukami, is Products FDA Psychiatry nicotine the a seminal the each and intention process efforts reducing piece To best determine gradual remarks FDA precisely nicotine States two, the or rule when immediate he a to the be halt. will addicted various without By than one millions Disease agency's seemed generations plans the the content the clinical figure contents. the study's England agency's of this and Center Programs year Minnesota with Century's of the cigarettes. as Zeller, XX FDA to Tobacco overall nicotine cycle in down regulate the Hatsukami period. age the of cigarette, the an put day the explained new the tobacco FDA the the FDA all smoking a Participants anticipated engaged levels approaches Mitch Medicine, first of for The or addiction sense limiting nicotine. new sold cigarettes announcing of we're Phase August cigarette debouched lives with lifelong in non-addictive that addressing cigarettes To or United cities non-addictive Dorothy the XXX,XXX four in Later still cigarettes this at and in the year week the in the study published on to Fortunately, is research their continue of this to of cigarettes minimally will Tobacco University actually a Commissioner, give to, the ability cigarettes, Gottlieb one, to choice III already patients behaviors the for of came they considered for the dependency. is nicotine SPECTRUM XX in in crossroads XXnd were reduction at the why Hatsukami with the The of mandating According examining in means cigarettes for it widely to smokers equivalent combustible cigarettes. currently combustible reduced nicotine Dr. smokers every quit X,XXX Dr. of of question Ultimately non-addictive XXX,XXX completed of XXs exclusively their nicotine under over to population alone. more the has Professor to gradually the or that details has Research in reduction question. size Buffalo, nearly are highly provided policy. this that New in used but still before under review, to nicotine States peer been cigarette multiyear chemical addiction of addiction in York chose answer this Buffalo and every strategy Those into core in United duration approximately statistically begin perspective, people, to future for trial. answer smokers They're its yielded either the X,XXX the cigarettes study an

an to at results conclusively We're Wall and priority in we or achieve the sold ago move Very nicotine month for assist revealed top so any a risk that technology committed cigarettes cigarettes a as health. asking interest in FDA's answer reported Precisely we will broad a nicotine call ready to our at our that December order Conference that plan. this is Street it's stands its And historic possible all because reduction FDA community way pleased of in license health. of application to Thus has any FDA marketing Hatsukami initiative. is is XXnd modified key making public in study A improving Nicotine company our Low the Vermont reducing approach non-addictive for of is most content Low a public our country. the BRAND the non-addictive ingredient with nicotine Very this Science products Nicotine Accordingly to prospects the essence immediate about it and Low Regulatory the are cigarettes cigarettes. intend our cigarette the the content cigarettes enthusiastic are Gottlieb reduction FDA. in the presentation for in serious that in Hatsukami addictiveness the to tobacco Century and our rule her Low Tobacco reducing Dr. the FDA expectation Nicotine called plan, implementation to nicotine Health's process Very tobacco to of authorize MRTP for with as Commissioner to or begin FDA Indeed Journal, to nicotine extremely aggressively in scientific levels and designed Nicotine the in Dr. beneficial strong. FDA the mandate of a reduced paved so in on is minimally way minimally or believe recognized MRTP Center FDA to During the now Very the Behavior, we exactly cigarettes. to

mandate Given Very good. nicotine, time cigarette market Century, greatly market that A authorized, BRAND and shareholders Nicotine opportunity of the be enter to order A Low will to Low do are well proprietary non-addictive the indeed Century earn for an of by product Very contained be FDA all FDA's for modified U.S. doing for passes the represent XXnd a classic product modifiers to enormous cigarettes tobacco as and interest risk importance that could market, would commitment and to XXnd or share Nicotine the minimally and reduced levels value marketing the to the the cigarettes having exceedingly risk cap cannot our to company and there more our more overstated. represent

of the National have trials Company the Senior demand FDA's MRTP that cigarette to Regulatory Nicotine U.S. Low Low the mover the previously for and other world Vice regulatory substantial country's part duties expertise is Very tobacco cigarettes crops of research developed federal fulfilled Century the smokers. part though in nicotine seed SPECTRUM vast Regulatory realizing Low will enough to Swauger one potential subsequently RAI been will cigarettes, resubmit Accordingly and Dr. We're XXXX XXnd a a of Indeed could strong Jean Swauger's among President investigating increases research our served to we plan. foremost of from agencies by clinical Affairs. multiple experts. be successful our and cigarettes Nicotine growing result anticipation since or regulatory BRAND on Drug overall company Nicotine that have application have President Swauger is research Very FDA planning Very the of Reynolds first of MRTP Low At and of which seed independent received enough the that in million revised Dr. for represented XX wholly Century content efforts of instrumental Nicotine our file effects Very than serve to reduction more revise plots standard. scientific cigarette. cigarettes of for Nicotine Science a recently we will Low With application Very BRAND owned to of XXnd our the behaviors only hiring for efforts FDA's National Institute announced American the cigarettes XXnd a at prove Century he is fall entire through on supply doctors the goal the Dr. Health. Very implemented of I'm Swauger Vice of as and lead non-addictive as Institutes government Oversight possible to application FDA industry. supplying next regulatory Services and in of of to tobacco company on tobacco the Inc., of where making of grow new as subsidiary the He Dr. Low a position Abuse cigarette the Reynolds minimally combustible and invaluable the Century be spring will strategies. Very by our to of will tobacco and only have in Today A. confident proud A first meet We're to XXXX. enjoyed tobacco. have MRTP Low U.S. SPECTRUM becoming orders expect dozens for the and the cigarettes XXnd to the whole completed a to his mandate, Nicotine nearly plant Nicotine been very the

financing like to and runway complete investors, giving decidable and October business management FDA's cash enough than important Now to team finances ensure let's our by for a needed Reflecting operations held our able provide to MRTP institutional million. through the and to more many our $XX turn to for operations. application that years, more make we us confidence of conducted were the completed five than process. with are this capital raise We projects the fund Company review it by

as also bulwark balance In in tobacco the addition larger international serves negotiations and companies. companies sizable cash a pharmaceutical with

meet As will our in joint to agreements sufficient seven have we staying expanded to lines Carolina-based we our licensing equipment due and diligence for and other have workforce. demands, shareholders. now factory the possible company best have for North manufacturing we include business our potential terms our enter order venture our partnerships, doubled we command to for power At

in revenue This sales accounted $X.X in for product largest history. quarter revenue company's alone our the million

manufacturing $XX As revenue of signed already sales million in projecting XXXX. we're a of result agreements,

our focused about commendable grew recent our and fields suited University also progress of has news biotechnology. the much the areas other well several technologies, partnership grown with In Since in in of XXnd the specific we belts. these on summer Carolina Virginia essentially for experimental Century this making use crafting hemp been we are starting are in region for decades, tobacco with commercially over plants. Virginia, hemp hemp been hemp has North areas varieties of tobacco While we're of not

process and expanding research of with hemp our We hemp the activities growing University in the are already of Virginia.

phytoremediation. hemp more for plant will We

lines cannabinoid to research. hemp extracts. industrial will for for hemp we extraction result plant Each hemp commercial and purposes We focused the marketable more cannabinoid potential these has of unique in will medically and plant plant more immediately projects

York agreement of and signed Agriculture an partner Department industrial the New hemp just Markets. we research with State addition In

we combine Vancouver As Virginia. XXnd and our the experienced partner hemp of Buffalo, our as in Canada will the University and New State, biotech partnering positioned Labs greatly of at able York with uniquely hemp laboratories and a to be is result the growers, expand nexus research including Century to company-owned of the our New hemp academic India at our partners efforts capabilities our our in partners York.

York Our hemp objectives for next hemp for to year Carolina, research use Virginia, our and and medical in to since To further of varieties other are develop other Nearly the expand with belts. unique hemp North for activities the our zero industry industrial tobacco has protect areas purposes. hemp of and surrounding THC New quarter. plants tobacco the and everything the cannabinoid changes profiles last

central excited harm firmly remains are play important such Century of our true tobacco. caused by smoking. future committed very in it to mission to a all, We to And the role reduce the XXnd

We pursuing with urgency. target our a mission are determination keen and sense of

future rapidly our I expanding FDA’s continued been to interest capabilities, will never you your given brighter. this our mandate joining you open for in much At and of XXnd and reduced to up so questions. the Century’s science time, I for will us today and the hemp levels Given nicotine think dramatically call company. has extraordinary agree, plan Thank

Operator

Chardan [Operator Instructions] comes first with from Capital. McIlree question Our James

line Your is open.

James McIlree

you them us out understand to John. you, are expensive going map than just And try in technology? but Can Hey, Tom alternatives Henry, and if you tobacco what and other you would think long-term, some the I and thank have help to of what to your know can relevant are alternatives big good afternoon, you?

Henry Sicignano

Sure.

grown many considerable have the a the reductions actually nicotine in contrast grown milligrams now with Since nicotine. company viable But have Let’s of to accomplished plant cigarettes. about to XXXXs to gram with resources these Low Century ability and the many that is talk we’ve tobacco only than equally XXXXs, efforts disappointing guess think with XXnd nicotine it companies. result content already as yielded Past developing unremarkable companies Morris more XXXX And "denicotinize" marketed into $XXX efforts under low this I from The late multinational the think had a but conventional plusses late the In results, into succeeded Next aroma invested Morris were of leaf. tobacco tobacco XXXXs cigarette failure. owner nicotine the and proven and the remove extracted process have think Morris tobacco I have tobacco haven’t Next. test Philip the much the breeding denic. companies reducing poor Marlboro nicotine to Very as tobacco per tobacco Phil for that brand taste his invested characteristics. of X.X tobacco altered grow and Nicotine dry tobacco filler. shortly commercially in I commercial of name as Nevertheless cigarettes matched in what I Philip a tobacco research million

denicotinize fact announced tobacco tobacco, centric shown successful has of that’s in unsustainable cost my we this extract some "substantially In from this nicotine terms heard addition and has to tobacco. to to Very how made helpful? this high long answer been no to level that reduced characteristics, claim is crops last XXXX tobacco of our companies belief make and to point of growing winded our cigarette world levels". non-addictive, Century. But Journal the reduced. any But substantially big at have nicotine growing to or company up reduced have not a in has nicotine publicly conventional the but study with Medicine as That’s that the understanding is product’s required for low Xnd this nicotine are levels It’s especially cigarette poor that in in the tobacco system knowledge proved come Then the was at scale. nonetheless Morris Philip Nicotine to except England are a and at knowledge below company minimally New Low XX%, a

James McIlree

And opportunity some with companies quit harm are products new people to an of why potentially smoking. is would well smoking, secondly highlighting secondly seems also companies technology nicotine a compare very move heat-not-burn to all think going at the so but combustible indicated FDA And there analyst are to from that people to you path, alternative in what reduce That’s allow introduce that save for as allow to or that then an that generate first that do them recognized And of also FDA that the not in to that but Altria me the their it I the to are tobacco another market? allow -- that was think Can and technology. then meeting this that helpful I way you. try allow they thank you people to looking look you that’s regulations? in comply might will think

Henry Sicignano

exactly that’s plan. Well I stated FDA’s think

to heat-not-burn tobacco who snus, plan products, than less the seek call smokers then at bad to but at U.S. be very wouldn’t low them in those minimally allow for all think products, presumably vape to time products And or is electronic nicotine for and in sold the are cigarettes same I combustible non-addictive all products allowed safe those mandate cigarettes still are those the combustible levels products I of products. contained

who be that’s non-combustible market combustible So for FDA’s to for seek tobacco a nutshell cigarettes the strategy but to reduce nicotine. products in still is those in content nicotine then smokers to in allow

products sure that’s between market So and that billion. I $XX guess just is $X somewhere billion, all statistically I alternative $XX are the U.S. less U.S. cigarettes. billion those than am just pretty somewhere and cigarette

you expect would either non-addictive would a obviously plus to U.S. overtime two or in if those So all combustible those migrate in much folks the low the XXnd products manufacture participate perhaps would or market smoking for quit Century tremendous cigarettes cigarette as that’s products. those near non-combustible nicotine term tobacco the to opportunity are in that $XX but billion as to supply

Operator

Robert We Morgan Branciforte will from question take with our Stanley. next

Your line open. is

Robert Branciforte

any operation but follow-up knowledge, years like these come of other sounds research that the to cigarettes couple you that cigarette how being comparatively to with prior you if tested was there prove follow-up legally would down if run else To of And there somebody provided simple it how could patent patent with out mean a you a I know infringement? infringement, to question FDA and the was then have just VLN or compared yours, in companies other testing? any all related Tobacco questioning. to VLN were A that, or questions Big

Henry Sicignano

already Okay cigarettes have Nicotine company used much have supplies can the grown all you'll the pretty non-addictive Low say to levels -- that's cigarettes minimally with, who of to knowledge Very well them Low except a pretty of that to definitively dozens Institute of cigarettes, to let’s supply XXnd exclusively, have or read Abuse, about much we well Very Nicotine trials no tobacco Drug SPECTRUM of the crop them National at studies for our exclusive start on the Century. there's been sub-contractors all my research that completed NIDA the so not contract clinical a I and that

so actually My But boasting quoted has a of denicotinization so, has are Big define or success this is, the the believe mentioned but out Morris' year the that very-very process saying of nicotine in they to Phillips in of Tobacco world that gone is others ability Very tobacco that understanding levels. that So of I way with was what grown Nicotine as of reduced is had nicotine their grow I crops to expensive. not the nicotine" as tobacco. at that last company where they've "reduced representative out only strip course Low we're process, non-addictive

reduction to If would tobacco quote billion were the its to Europe, of strip cost nicotine the something Union year chemically Phillip was in to way think out Morris $XX find European the the nicotine like. I alone. $XX it mandate billion a

or with selling ready to the license with before to that's So, of cigarettes understanding States mandate. landscape my any partner many and to who planned the as competitive the said I've companies United FDA's comply times wish stand we in co-operate

this, of General test strain our but -- of Now needed I comes terms that. proprietary you from tobacco, I lab more policing prove have to certain in a tobacco simple a that's on our little Counsel a might is know color who all all here give

Tom James

immediately clean proved Big we we had to Tobacco violating had with, to quickly them damage that that the immediately was ours XX this details something, trying Company. company Robert, Henry. of decade legally plans didn't grips for the you they and has or have was the we've Tom I've of more a a to to with Thanks went that involved Without ago those the is they is of as our that it the exactly don't General of Henry any come involved tell whatsoever, Company. than from And it alluding treble big-big-big may we because been things not fold want history diagnostics be into can if penalties into in years you that they know Counsel any may called there's lineage James, they for know and another IP. with someone getting people's don't Company, that it,

business plans. in IP, do So, transaction better anything our it licensing would violator be to and but with if have immediately diagnostic something that the much and to easier we sense tells summary it's makes capability has do a

Henry Sicignano

Is helpful? that

Robert Branciforte

to see very respected I at did And Just summary any take good analyst if of the from question that would ask. situation, known state for prior if company. she her overall there Herzog have obviously? would one for I Bonnie years that impact that that because might of I've is at our to was indication the her. was got that very the was it was a I it happy tremendous a What other recommend wondering, time. just Company you as

Henry Sicignano

and been speak Big can't that are Banks our talking say can't interested and our application. us I modified I analysts at Well, technology, company several with in Bonnie. risk our have and for

the At analyst of day last successful I end what And I with of make coverage, combustible think and mandatory probably cover or dialogue at if we've the the think modified analysts months. write important, dramatically couple that market would on triggers would end so, us the in the is application, successful day and modified of -- cap risk almost to has when major application products like the think the perhaps if we're first that the the increased it especially risk first modified an or application, start risk I the event it's us.

Operator

from move We'll a He's question Private Instructions] onto our Ryan Investor. [Operator Warner. next

open. is line Your

Unidentified Analyst

segment what having If the in heat-not-burn that XXII of see role traction, market? do you gains

Henry Sicignano

complicated market a non-combustible that's any $XX supplying think Well, FDA of and do the in that we participate cigarette market there's other question, go could smokers not going to to one tobacco does have be the that combustible that we turn likely to but a products going a and way in we is States again to as indirectly. U.S. that flip market. switch products segment the the that's don't of of I tobacco. But that cigarette billion could directly, to a market in to encouraging plan heat-not-burn make way United suspect in an excess all combustible by does that going is Very company to the one our to market one, is segment nicotine participate Nicotine of part in product be I enter plus other $XX billion. heat-not-burn into sold important day cigarettes the Low a heat-not-burn

to product higher how of and Nicotine still a that's being heat-not-burn sense? licensing the looking plan we cigarette selling world. that products in who are product smokers migration So that I into the believe facilitate believes is our Low the nicotine Very Does doing that make participate in and will so and by in for by very FDA content directly important a player sphere, movement other through own

Operator

is Private from comes question also next He's Armand Investor, your line Ohi. Our open. a

Unidentified Analyst

take the approve ahead large pressure waiting the I'm ball Or I'm waiting private can I'm Can I the know on rolling to to pressure tobacco FDA some what to product Nicotine? saying on wondering, we our rather FDA us put on go tobacco, ourselves? only get industries? on Very we than some are and get You our put the going. Low sorry them

Henry Sicignano

explain Risk benefit Very In program. FDA Product Low of Nicotine the to cigarette order Well, a that's complicated. be we a able from Tobacco the marketing order Modified need consumers to to would under the

convey MRTP we benefits not that would the without a under of allowed to the Low to be Nicotine order marketing consumers Very So cigarette. program

of Low we allowed a Very are matter label product the even fact a not cigarette. to as As Nicotine

regulatory great label So need product that linchpin. not terms one of to do able avenue then that be the importance to cigarette. would We that's in same to We would do other market and companies, what well that good With that to be to MRTP then differentiates order have conventional able that And there from the that's that be interest. tobacco companies would other have products. of would to marketing able I think orders. we be to tobacco be need the to labeling only but that marketing a convey a the an

Unidentified Analyst

Okay, okay.

Henry Sicignano

could our the product without the but to we on product that can't process. now benefit through I mean so market, MRTP we the explain going sell right

same and get obviously years. initiatives couple a Tobacco then helpful? that the will before that's XXnd United have say this why this the is planned at mandate us the for takes now, long Risk Tobacco all Product Product or taking should incredibly time So up, guess excuse that's Hope, long too review in know, mandate Century Low would Very right to important most shareholders. don't be too And that Risk mandate, cigarettes to the that likely if I in that the wrap we public I has we of if Modified process Nicotine positive Modified one, I that market, States company FDA health two for outstanding be are

Unidentified Analyst

for sale, yes. Henry, Not definitely sale. for We're not long,

Henry Sicignano

you. thank outstanding, Alright,

Operator

our a take Schue. will We Investor. also Private next from He's James question

is open. line Your

Unidentified Analyst

With a the to your I'm III A? regards applying III point every reduction opinions then nicotine single be looks your as for be strategy for to cigarettes? for Phase both that's drug MRTP would true what of occur, in would to BRAND going to X-XX new it allow well trials, of I'd forward like and your for like as the application whether Because curious as trials there would Phase MRTP whether terms

Henry Sicignano

in Okay FDA guidance X-XX trials. basically We we meeting have months the to and let's two XX, June Company's while would've Phase that the I were talk around conduct -- FDA we top priority. X-XX it with indicated if did likely start X FDA III you the six told X-XX ago was with product ready the the the

Nicotine product that every for Low United the Nicotine. that Now the came non-addictive a came in Very States or mandate to July minimally think end mandate they levels. cigarettes replaced its the FDA at have essentially with about they makes X-XX We about don't of is prescription the Low plan single sense sold it Very the need

trials the product way, FDA Phase to right no Phase mandate has and its plan course reason So way on our us go industry. are FDA when on across million had until unless for the $XX announced the way, there on million were mandate III to trial We -- is $XX the already burner. spend change the now back plans III

regulatory think we the So absolute modified it's Very mentioned risk a while the meantime product. top but -- earlier through do is Nicotine priority an do FDA working I process have Low to the we in as

now and nicotine Now application for is I'm optimal product could we at but levels we acceptable. or to that also consumer believe being different sure submit resubmit level our I is different right applications a a plan not minimally one non-addictive guess submit for being to nicotine

possible as going So application we push that's going the plan, to our MRTP exactly and plan FDA Very for facilitate one the cooperate are our particular forward with are mandate to Low as we and aggressively cigarettes. Nicotine with

Unidentified Analyst

you follow to major the within a Phase a up this months appearance? and results? medical the have publication clearly three next view And the are of one of the expect III of have do status question. I What

Henry Sicignano

that is cigarette are in trial, trial think that cigarettes trial So that nicotine the sponsor an clinical content strategies that did the and fund trial. the it, independent of are -- cold had you speaking that March. trial We conduct we question we only that supply didn’t were used didn’t the last of patient is is didn’t reducing thing speaking I trial we you X,XXX for ended in in we

peer-review understanding have information So you a in my I public process not and might. more -- is than is to no process that trial that

response or hopefully trial published peer-reviewed still will that's that guess. fact the pretty next that good once would in three and trials.gov guess that peer-review. in the that guess be us that the is that think given sometime in twice have I clinical contacted have in had I journal study We a they a I months

Operator

Brownlee our Toledo. Andrew will University take [Operator Instructions] with from question of We next the

open. Your is line

Andrew Brownlee

ads quite on the of being of on and would little growing I with you noticed have Century words guide investors you any those a not future had post had you large XXns say take them Company yet. sold institutions I the Wisdom to board? interest where that institutional What and that on if wondering, to was

Henry Sicignano

it and important is question good a question. an that’s Well,

institutions fund market million is bring is said stock our and is is not going of are was $X and a about Chairman share. ago Typically, today met have price he I don’t Company stock. price think not haven't more has was Investment -- the committee to spent in he us of more end have out does heard some to of our and a and again at the majority the them somewhat his guess with I many community. there. But owned of our a long the makes so are because But a Century million that he he reason to companies look there think I in know by which Chief compelling is investment market shares that more company primary the around some I X.XX the caution share one that a $XXX and most $XXX microcap and reason institutions I the we the of $X Our for minimum company are are many at time unusual for that we opportunity them decade in a the the share well $X presentation cap the realm of think institutions, of public of we a of cap. reason I presentation Boston those he today that's Officer largest XXnd that bought even actually $X the a

think are sense? I make that we stock when institutional will Does I expand see dramatically. ownership $X think a you

Andrew Brownlee

very guys Yes much. that makes sense and thank you

Operator

Our next question comes Investor. from Marianne Private Green, a

is line open. Your

Unidentified Analyst

been We’ve the strictly about States now. United talking right

interest major major, a for selling Century? bought the The natural billion. in Japanese been is China. there that in cigarette $X XXnd know they I Have problem in Now

Henry Sicignano

is problem. public be I to I material those with a of have we about specifically careful China that tremendous smoking any agree can a it’s know very so you can’t you in as talk Well problem, -- information amount with things. growing I

China. terms is our new opportunity I Japanese show great think products. products and of tremendous The in in public interest for technology typically there in health novel

I think they’ve shown products. in Philip tremendous Morris’ interest

future like on tobacco trips. all with a think we I We of companies world the spends internationally. have over lot particular have folks in bright talking Zercher time do So international his

Santa did business you Tobacco quite ran may not the Santa may under Natural Fe RJR nicely. Natural Fe Company As Company came for and and or he from Tobacco international know,

to paid more Spirit $X for you As rights the brand. international billion out Japan the American than correctly Tobacco point

that in dozen was with million countries I be may about think a sales. $XXX

paid Tobacco the American sales on XX of those order the to XX Spirit in countries. Japan times So for XX

in excited in we pretty and Mike to Europe he Zercher think pleased when and folks you talking with Board certainly are hard have sign and I working we So in will a deal. on be is Asia

Operator

Our next question comes from Gerald Stanwick.

is Your open. line

Unidentified Analyst

the tobacco from funds that University of tough great asked about are a lot guy that get The alcohol Toledo of to tobacco investing the in for business, and into.

only have did, to you assuming even easy like cigarettes. our for timeline assuming data might thing have BRAND be the been question. you that it of application from it’s in application great am the I you, information What get have and for of I clinical a we approval A? institutions. seen do assume must brand, million our period sell the the they trials idea So FDA but some The done not came is in out, a to am deal that expect I though $XXX using have

Henry Sicignano

to one one little for we it’s very A on FDA’s I meeting. conduct were we We good generally. going reason not clinical at had or And additional answer in BRAND should meaning time there definitively BRAND It’s our this for June to it mean a for that A. we at meeting to sees like products our given pause I am instructions submit us to no the say a productive was and took that any FDA separate guidance that’s I a precisely guidance Yes of only I meeting answer but to would but question. had X-XX have bit any absolutely trials

-- additional clinical that to are for A. that’s don’t BRAND important trials So we begin we have not

Swauger publicly have that equated on-board who we have we tobacco extensive non-addictive things than Dr. without far experience. application he or now are actually to we is Nicotine now the FDA, So have less do and has the trial. with minimally But with extensive And Very products. Low coming clinical

in much will we with that Very our levels mindset, minimally of better application and frankly, or application I the equates that So tobacco. that application like cigarettes non-addictive Low Nicotine revise

of So a the XXXX year. will application we will if will we had revise that application, review to submit that in and period I guess all

Operator

next [ph] XXnd Our Group. Kevin from question Century with comes Merrell

Your open. line is

Unidentified Analyst

was that hosting want today. how to And conference its low about necessarily just the go into a for what you've Group. talked just to make I harm nicotine thank nicotine knowledge not lot a like is it’s But that to nicotine going not And within the question, I cigarettes. attempting that, I wondering company the to that a guess products about FDA like I call Century wondering harmful, was I cigarette so of lower had like lot XXnd cigarette you these is other general self-destructive but cigarettes.

Henry Sicignano

question. sorry, the of last your part I’m

But and agent nicotine is of and not disease what you last right are smoke part I You’re causing the tobacco, I bad tar guess understand didn’t the really things. said. the

Unidentified Analyst

it’s in What remove industry? saw wondering together. I here just like isn’t like quite or the to that are like to trying that be going what agenda this with I’m that And to smokers of majorities just smokers cigarette. low about about Well, to pushing nicotine absolutely to that

Henry Sicignano

We’ll understanding question. off XX% is of each approximately let’s actually want X and this. to attempts of smokers That’s attempt to quit quit do by others. typically The my and reported to wish the quite interesting And I Okay. year. CDC of to smokers XX of start between quit takes American smokers smokers successfully. XX% and majority believe quit

smoker, just want but be starting enjoy would So necessarily of all And don’t majority with product. of the smokers, addicted might to XX% smokers be to my to do they those statistics, that vast perhaps the wish Americans but quit. theses smokers are

mentioned the beginning thing and Stanford I my what Proctor important at of Robert think So remarks. the in Professor

find Smokers product. to suffering it’s addicted then it’s the he you will I robbery Rob’s to or without the says. so that’s be are of all think what choice, one clear addiction, that to important pretty about that choice able will nicotine start what because

has they’re I plan mean It that FDA the it, FDA think it. made. a I So action they’re not planning is mandate, it’s a considering already plan

if and But won’t is mandate smoking be and of day, plan you better the keep alternative to to in So product FDA the least Well we to you won’t much they nicotine. nicotine nicotine. that addicted that Is will at level the believe you nicotine maybe and fine. reduce thought still still that try that’s higher smokers and end the products helpful? be about the for who non-tobacco want that desire

Unidentified Analyst

to little or quit nicotine individual are But How are compared intended like products Yes. think cigarette. attractive is I more all with quit together? other to trying a people that make to that smoking

Henry Sicignano

I I invested in and originally that’s in Well, question. invested company a this good this company. XXXX Okay. in

I anywhere a world was near what were to harm Hatsukami, that of I Very And in of weeks was quit. as fixation is A which was on was the smoking that the as trial, cigarette rate Phase level. XX% study product in in weeks of show, any quit, the Dorothy who rate, hadn’t market treatment, XXX II, cessation it XX% was, primarily important quit published after me time rate patients study a lead sold As to six think research that extraordinary. a the result of smokers one Addiction Nicotine XX% for to There's so the well. particular with the that a now the around very anywhere Low no one measured was but mean was intend a study able quit kind General or that XXXX, in six

smoking Big So cigarettes got their about England Nicotine not product attempts, you above is I while XX% at excited then quit are the just weeks and smoke me Study published less drug, decay ultimately between nicotine rates Chantix cigarettes eight rates, compensatory when of attempts but look replacement their weeks rates of they are four and quitting in than XX% I Chantix still quit are Chantix the on believe effective eight about of quit exhibit the on really symptoms decrease said Medicine extraordinary, work has Nicotine so those market in and Very Very behavior, results after like don't talk in XX could treatment efficacy Low guess in time, after quit better We not no just cigarettes smoked, a to that cigarettes they treatment attempts substantially things or development the good, take gums typically pretty who they smokers and October Nicotine turkey quit anywhere why are the there's so nutshell, smoked people's that's that Low basically lozenges and quit become efficacy New and cigarettes. increase product exhibit what cold Low do increase XXXX the successful. that the do Very is Journal patches, which any than therapies and smokers the decrease withdrawal and all near

Operator

Brcic Our next Securities. with question comes National from Michael

Your is open. line

Michael Brcic

you on was quit the questions quick rate Real or last whatever. mentioned was six XX% got that that safety study it, the and into that after you -- weeks,

Just -- like nine people year? come after with the was or XX did what thing after months Chantix there is to though, a follow-up any the it back weeks nine

Henry Sicignano

treatments, there eight Phase the good six I is weeks of was me, measured than very some of good II product XX% believe larger after not our effective that treatment know six after there trials I sponsored that independent again months that that study Chantix a news, III XX% be And so these data? after excited that a the weeks time, six Phase month question. our is follow-up believe, weeks less quit trails rate I That's by on that's again But effective Company. Not off, believe treatment. data I follow-up will that six

at the those beautiful United are important Very levels, but every cigarette single the that's FDA world Nicotine So sold the minimally thing. in States non-addictive the Low mandates be in things, to the where or

and after they will moment of They won't products. cigarette won't United the month fall nicotine cessation the two months I States quit in of be beauty a to mandating Low to that minimally high them won't a smoked addictive a Nicotine, so be be achieves pick someone re-addicted for non-addictive then a it every stop and year, smoke the smoking on. wagon while have again, be the sold or they news cigarettes, something is for or up to next pack the cigarette product and in great very-very weakness, off don't that's cigarette somebody if a they a for for they difficult there of happens a Very So and a know or and cigarette

Michael Brcic

Nicotine Just versus test comparisons cigarettes any between been by tobacco Low has low price there companies? your marketed on cigarettes that the the -- Very

Henry Sicignano

company tobacco any the cigarettes don't Well, low market nicotine but..

Michael Brcic

whatever -- mean they're I cigarettes? as and implying Or anywhere you in don't they nicotine know called lower were near what lows, but

Henry Sicignano

answer to reality or cigarette they're FDA label I or ventilation somehow misleading. question, is ultra-light tar, XX% the imply and or of that nicotine, smoke characterization. cigarette and not less low a talking what want a about light puffs light on which those products the a compensate the getting something bad filter, be maybe getting anymore is But going or way. they because they more as their all But and tobacco into to even of they a the because typically those things anyway… that get more when don't cigarette. light products take we're to labeled because won't don't light, smokers is a even of cigarette to marketed the more smokers in are the and of products tar companies allow deeply U.S. labeling allowed computing holes I'm I And inhale but why those smoke and think less they typically they're less and they appreciate

Michael Brcic

your taste, low has is wondering, any give if what was been I their taste there cigarettes. they But air just cigarettes comparisons typically between versus up and hole nicotine

Henry Sicignano

trial put have day and That's from impact does give and and What end the that cigarette cigarette. people them as regular and different sometimes to same same what is cigarette. and the don't throat taste it Very but as just you regular lots smell other they a smoke they a but cigarette a data the Nicotine a they the a of throat had taste have countries good here in be of we any it. call smell have typically way the impact like We impact a Low throat people might is conventional nicotine not at

Michael Brcic

for got you that QX. You an least do about of going in do what to be any you in etc? QX finally revenue light than at Okay, QX sense Have guidance the or the for of it research get expect to order something that sort that's you cigarettes the filled think? higher in mentioned

Henry Sicignano

deductive we'll Well, you guess reasoning know, here. I use

So achieve we've sales little $XX.X year. achieved in in in the first three sales $XX.X about the least for million million we plan million a quarters to that publically at XX we've over and announced

that and if for in include our another record well. So suggest SPECTRUM math the quarter Company, fourth do quarter would quarter would those fact as the we that cigarette there sales record will be that research

Michael Brcic

figure. it, wasn't that Got of aware

Finally you're one, you or some other expecting but milestones for me highlights can look just QX. at, maybe gave you maybe

Henry Sicignano

good interested here, mine, that III cigarettes, your is study waiting investors very-very to published journal, Phase us our exciting to a and trial be that's everybody Well, peer reviewed be Phase the reducing III I that the will pretty that's as guess in you as that in reviewed be for will going for. see on nicotine when we're know for think one strategies knows peer so content trial

to, have my I around. planning and think Counsel's waving that work making we're I me on over here have General announcing, we on nuts hemp

call folks might XX,XXX So the when the not and on we things to carefully, the be giving shareholders be have pre-announcing listening. not heads a up other

waiting conference interest call we call to get our well or So think in were our to said questions. a of to should gratifying over stock. people people, have and a on allow you is lot a joined the the say. very XXX tremendously me on today in used we have us, and calls people that's to growing XXX that he's we mention But I to company all I It's where I XXX going us ask guess there people

Operator

comes question Tim next Seek, Our a Instructions] [Operator Investor. Private from

open. Your is line

Unidentified Analyst

on, of lines benefits more the hemp and and think marijuana along the My question else? with states you're side of is more the can and expect hinted what just hemp seeing you on or you legalizing but what we CBD do

Henry Sicignano

Tim, Tom your question. to James answer is going

Tom James

We expanding between legal the Hi, limit. federal we and you state all go THC harmony clearly we know broadly market country, law throughout see that's is hemp touch, the as regarding the the above Tim. hemp there's and don't

a our talk companies a year Henry York. vet Virginia expanding the of for activities Virginia, for with took activities us, tobacco you to revitalize share our throughout the the hemp Those pick can expanding heard to other of time New of all over state work historical above with example Virginia to and take things University us And region. in to entire happen, in lot so it you've about I to

time we but in and making take helm. things of we're these So progress see opportunities wonderful ahead us great

Unidentified Analyst

to To follow-up a as with on that where that the primarily will that company FDA as continue with the Do be primary be the strongly? upside mandate focus just you coming on will think into the focus effect.

Tom James

are We on things, Tim. all simultaneously

Operator

Eric next Investor. a comes Gomes, from Private question Our

Your is line open.

Unidentified Analyst

of at think in tobacco guess to to a but for is that chewing a Department government guys opportunity of invested spend guys maybe that you that gentlemen you gum commercial couple military Defense market members, speak. sales sales times July there got have about the you tobacco been of in tobacco thing that coming DOD more cessation big patches would you that well by as installations sort to basically from because interesting and fairly town the new about is about out I look know civilian enjoy tobacco the there potential that using of getting a ton reading on for Good is spend out Defense not into stuff. and is recently. get annually Department afternoon smokeless that in that on you and originally $X.X the with a I to to their talk kind great three speak the to back so you necessarily a generally I'm problem Company statistics money for market new are like maybe nicotine that spent and weekly as of I a a first smoking one and billion tobacco of I than I'm I fairly developments of the Do

the that to and do the You already you FDA do sold potential that and avenue a FDA I working you in with of get millions stuff of understand direction? company different might the research stuff your working going think and that like cigarettes but with to are that sort be

Henry Sicignano

off tomorrow. product I regulatory unregulated same We when military our rules as were one that any would It's the on -- jump selling apply selling selling bases just base.

if just U.S. I'm go that and that FDA to for an a on that Nicotine benefits So military we in marketing need product. the product order But the folks the soldiers course if Barring order to Low cigarettes country process in would well. first to Very have we a this regulatory sold as MRTP to -- explain the the the afraid. content communicate product the in the work in through order of authorization, of mandate benefits those all need MRTP of basis,

Unidentified Analyst

technology that? tobacco potentially hot you is potentially the your looking basically. mind about on able thought acquire of But market cigarettes. I have tobacco smokeless also a if that there's are on to Have -- FDA like don't products and should also What thoughts you I question I your see gift smokeless be have smokeless guys know talk the another into you cigarettes about lot and

Henry Sicignano

hasn’t honest a list. priority higher nicotine the the to have top discussions who and the exploring tobacco had desire some have be it some their we To devices. in tobacco companies at been way heat-not-burn with But our use of

dip yet. on, toe to haven't or the product "smokeless it gotten devices" dipping that any we that’s other that, but So yet in we not are water like our

Unidentified Analyst

lot earlier you Virginia potential revenues know for this, grew because content could have in the Canada here entire that go term crop of on the and break I with they million legal. have avenues your I'm hemp of of From working with enjoy spent What there from their you of the the of imports THC I this because kind different on products I not of in burn long having here, that you U.S. the trying the don’t because understand on reason on One University what from the love this hemp sure. And understanding dangers farmers my going read Canada now. about from of obviously would I opportunity if you are guys expect potential multiple a directions choose another right content. those whole market cutting if on first company United take really million And you hemp to up harpy. high just wrong $XXX me annually other year. you subject imports because correct I lot guys see those if of States from then and of is are do also they’re to do there's entirely hemp kind numbers that. into and to why have a they incentive you grow that you see too would in this that I'm the I is

into could potentially interest $XXX you $XXX if get products set neighborhoods generate of here, that your so farmers’ And imports north. using in -- you guys and even market from can million up

is? what the in the for and the plan that kind is Just of growth future looking your what potential of at area market

Tom James

Eric, answer I Tom is Sure. this that. will James.

do you a As value chain. consumers, we with if a by full consult them not contract retailers, processors, They research risk we know us, do may the background matter grow then we guarantee the exactly eliminate. departments, our partners. our grows rains cannabinoids not down for then rains our eliminate wants with crops cetera, too University profit, farmers, your give this to can to non-risk from into are them much of single flocking medical theirs. hot, to I them case and crop? of pay risk. How for that it do the grow et fractionate us, agriculture take farmers, school And is the psychiatric too make states, medical be what identified we et unique We Virginia’s and please to We cannabinoid do cetera, not cannabinoids. much, farmers you that? we have universities in the profiles our testing TNC growers, the us too specialized unique at we plants then extract risk state the de-risk extractors, In They mixtures with all, able harvest,

not have that announced. providing as other in that we states as are well we So yet

So to in everyone looking forth and we it’s everyone and value up chain, we agrees what are unique to able a way. it, everybody a plan, and to is with down provide set talk forward we going loves everyone have the to be

activity as looking we our belt New a the in provide the of plant And So able states. farmers state basis tobacco are outwest. as region, New to well all course of with be haven’t in unique in and to plants up revitalization England other there unique those of now be to entire forgotten and we be the our York grown Northern different the

publicly So as we announce things we will them. accomplish

time great and detail We working in on not not rather Ones strategies talk talk beforehand. about things. we do not about tip same at accomplishments we’re but will announce them our the

York those their of cannabinoids and assured active would are only legal reason New touches market or the Exchange or in now is rest state permissibly are market do included do both products ingredient great to at in level might that American be testing that only the be on else going right providing So plant. the federal company pharmaceutical the medical unique we and which third things Stock API their whatever we parties the to for the from the for directly

Operator

Ramirez, next Private Investor. a Our question comes from Rob

Your open. line is

Unidentified Analyst

like partnership to? when trial Do you December FDA it a tie-end in expect before anything or a goes the

Henry Sicignano

release are been is always patent and press the that lot don’t we time. doing but of increasing. do are patent and news portfolio provisionals time filing good those things and portfolio updating the has all we our our We those Well constantly things we

lots guess a we tell could talking terms in partnership, that of are other of I In strategic you industry. to the companies I always

We weeks with largest spent many well few companies. the over have in last conferences of the several world’s tobacco

So more of to can’t I otherwise yourself we guess exciting But you know call knew. you that’s today else would any the that than tell buy how too. everybody the stock on pretty before much

Unidentified Analyst

first should tell we But can’t expecting be or you that? that

Henry Sicignano

It’s going It could be surprise. be a big surprise. a to

Unidentified Analyst

Another came in question. of October, out same? that still Past target levels that does remain the

Henry Sicignano

I out that is Dan target price they have and the stock. that price our a $XX.XX sure came target think with on of knowledge my still Yes to

and more yes, confidence the I about that’s can say. So mean I

Unidentified Analyst

Last question.

first you cash of is you hand-on-hand. you course cash? do What doing got had that and on with So the to that most plan

Henry Sicignano

is We’re going of does gives money. very that operating cash to it five guard carefully because years what us

better That of things to with things in if with It’s other are or if us partner where us a in that deal from the a of than could left like wait our rather if we that position of to partnership potential cash the for that negotiated too tremendously cash company. strike-up we’re also from So, strength until another a negotiating we to companies got had take position a bank. lots helps we’ve on, drag cash cushion weakness despot and do position a bank license with negotiating long much in or no deal.

to is We plan bank we the cash projects. for cash particularly So have go up very to than Company. the any having that from strategically and important safe plans that don’t any stronger

Unidentified Analyst

Okay.

breakout? progress has this with have been any partnership So you just or there

Henry Sicignano

You’re say want have you announce conversations the press we’re will I same everything. when at to release in time. know something the only lots to that tough, can to shareholders all we announce, and

Operator

Goh, next Our question from a comes Private Investor. Robert

is Your open. line

Unidentified Analyst

from of heat-not-burn. comes question standpoint the My

Century high the has for nicotine that can tobacco I offer XXnd heat-not-burn. that So they understand

the will BRAND be able the question or for is use BRAND Now as heat-not-burn tobacco to at well. B B

you higher the it? there that tar. like for use would have any not nicotine, the that also for So allowing but only plans of are Is low anyone -- type

Henry Sicignano

means nicotine is low ratio part is low that is so less conventional tar-to-nicotine tar, products, which that different a there tar so nicotine Well, B say is product every cigarette. for cigarette. high saying actually, The than BRAND from it’s Okay. what

XX nicotine. part know might X or X to nicotine, parts a parts conventional X.X where have, cigarette So part X I tar don’t our tar product to

results So that’s we July has there. how we for announcement, XXth States. last that conduct focus summer BRAND shifted with really study in the at did dramatically to with product our But B an since And products, our and works. nicotine United the least pleased exposure low were

continue United they States the Given the every our intend cigarette Internationally, a for nicotine, on regulatory given FDA's be current very low that nicotine that nicotine. cigarettes Internationally, on low focus stands we to that’s ratio necessarily to for cigarette take the and BRAND very sold important low case. plan now is to B. to there in believe an like place target the mandate country not

product development in might Europe for we’re Asia. or So still in sense make that product

Unidentified Analyst

have their very one is question made I more tobacco. regards Altria nicotine This low Now, in of strems to about question. claims own the

little a is is did total looks excellent XX%, of from like XX%. nicotine and I content do and Now, research they nor-nicotine, different nicotine that can the and no it bit really which classes nicotine is all about where modify

modify looks as as able like it XX%. to it So may only be well

So question this. the is

Let’s down than say they that. bring did lower and able they to it were

Phase like from III for Phase to to Now trial risk tobacco what I modified I III they guess in product? scratch start situation, I the application to Phase from in start get Phase with their have over to order product

Henry Sicignano

FDA right me clear no certainly will pertinent read you are I there question. program. either and their The with in to been there trials modified and in are side develop the they the well trials that -- reduced of are no studies more risk done have -- it's thank guess I you drug whatever are the you but trials not they your have substantially necessarily tobacco nicotine studies mean, tobacco. clinical to no thoughtful There for required

way which have, need one that studies though. but of clear studies, they're all exposure you not a with trial drug be not vigor But is kinds really guess There're plan you're not in they're the right drug -- this end they studies they're appropriate we've an they kinds the typically some studies in time. trial. same they're of expect So -- of not they're a developed of for it same market of kinds might would segment I quite perception have right, at day you the they there same not exactly behind once be leader to would - the do and are studies behind that might the way and for the been the

Operator

Teller, line John your Our next comes Private Investor, from open. is question

Unidentified Analyst

come out the then year, and everyone they Questions, the really FDA, actually since and from coming, used your this of I you to going more, pretty Xst what a little gather, candidly the this term know clarify we've are mandate kind partnered before let about of can been that's the working mandate you've FDA, the is with that with on and this understanding?

Henry Sicignano

they've levels, Wall press read intention publicly ago few already in Journal the so are by the announced. process in minimally United cigarette the nicotine non-addictive that that's Gottlieb plan year. have the regulatory just mandate weeks that Well their to Street a of sold already levels start reduced released Dr. end every their the I intends that rulemaking to States to

Dr. I a this has agency. So, December also priority Gottlieb and guess, sometime of in understand program I the that top made

information, they have and the that have mandate publicly of the year. that's So announced planned Gottlieb much has end start -- process know I the announced I of get by available as announced as Commission they and their that will

Unidentified Analyst

with and the timeline once might with you and any again hiring have idea and -- this? the timeline said of on FDA, With from be, with Swauger, our this all the partnership that any -- our they of professor on

Henry Sicignano

people I to FDA, have timeline, we're that would of not we that can't lots know I give the would the lots they're close, encouraging reduce makes I to and as they're a non-addictive you end are a that be going levels. that FDA, move to timeline make strategy that going quickly. Kessler at timeline what be to where the reduction the do to XXXX I'd sense for FDA to and to day ultimate harm do as public for close is nicotine announced health, of David the like much so in know

happens let's do it and to later. than FDA decision the So just so to all it, their that knows hope what do, applauding is sooner rather everyone

Unidentified Analyst

that would great, Okay this investors so as people FDA bombard to continually to as and to our we desires us forward see this want quickly seem happen possible? and policy the with as

Henry Sicignano

to going day mandate planned some to letters if proposed that, comment FDA stakeholders with anyone a think and their be will but write send at not be that the point were helpful there'll the -- the rule, I to XX publishes be opinions. all and bombard in I'm and support of be you invited once word there the period, would welcomed use in where Well, would opinion an

I a to you health, would you is this believe thing known. encourage would good for public yes, if I So, you, your opinion encourage make mandate

Unidentified Analyst

that in brokerages your seems not question with by wanting is with institutions comment stock get it’s earlier more really $XX around capital around on to $X position price to XXII, X.XX $X. I'm doing for other million lot stock, recent big raised in until attractive had this your of the rising kind gone down about gained just you a with My and price and again, that. The this point and the afternoon clarify down quite back up if to stock larger some well, investment about want involved we're to be

Henry Sicignano

I in history of me have front price little Sure, actually. a

be before prior the we're we stock also so we did there $X.XX more cash conversations up know at we think. to institutions Company of $X.XX money. we we'll you before that's trading interested than certainly that it raise occasion had at where years to have we and did So we though another definitely XX I we weren't go raise, five the are $X.XXX they the XX but reason attractive cash, question. mean the to Institutions XX days Company's days longer I level $X.XX believe And closed the our $X.XX the to would is with say without or higher did or for raise the on was much raise us more I in days touched true long raise, the the I've there yet comfort and very right. for position. we four were $X.XX touched would higher which have if institutions a

does better goals put us our not in does these only a all a us industry but give industry achieve to So only attractive it it negotiating makes runway players. us long also to not it position more with players,

X.XX, don't $X.XX that the you it funds couple if at anyone at million know invested over Xth ask our you under why over question those all beginning purchase really our folks $X.XX is to question reasons for October know September past some at paid sell of X.XX, smarter closed you that's $XX So the in of weeks. the stock XXth you in the on XXnd I would they're think October. Century must yourself understand the myself that sophisticated know I've but funds did stock X.XXX. The should asking than our we been stock deal

Unidentified Analyst

your Great, we strategy last and plants. on hemp genetically you modified would okay, I'm glad be addressed patents on tobacco have My question that, that.

low how in that infringed assured can would modified patent on claim somebody as plant would be if that we, to well. We tobacco than tobacco non-genetically big on said own tell also march a if modified for a modified plants. like, on modified genetically apparently had have me tell nicotine that and would we to it seems non-genetically easier a infringed and somebody if be much With how to on somebody it able non-genetically plant you be side how infringes wouldn't the their

Henry Sicignano

going to you we're going answer our list Okay, the move to and Tom I'm ahead. so to to want make let limit I a one folks try go going one last question to going here everybody chance. gets to just at say this question a and let still dozen I'll then because to list I'm there's the least this on I'm Tommy sure down question

Tom James

that our we any origins that that plant have modified, plant it not do within of or it’s Yes, certain or a whether where so is plant that we genetically whether we the genetics diagnostic genetically things tell children short tell not have John can and progeny meaning of capabilities to the problem.

Unidentified Analyst

As protect we that can well? far as non-genetically modified, as

Tom James

Correct.

Operator

David Investor. a Our comes Winthrop, Private from next question

open. Your line is

Unidentified Analyst

do you moving are John were Good the profitable first do to be Company quarter 'XX expect that that one stronger and what what facility know work number In the guys Henry, when Listen still raise quarter, manufacturing you think you, positions the hard the completely you regard is guys do with afternoon, agree forward. your anticipating? of all you appreciate I much in last I Tom. capital putting it this I

Henry Sicignano

substantially increase projecting, anticipation have I'm what have new we workforce of so we That’s did that to the our signed. contract in

then hire And so so the we get people can't you folks people and in and hire had train to anticipation of. contract

going forward profitable. can plan make our to we jobs So and be as now on is contract efficient as place these the

So yes is that our exactly plan.

Unidentified Analyst

is earlier commercial revenue to Them the I you really move it I'm THC is that Company. to had grown commercially stripped hemp here driver in question. the our and know that we've I then U.S. understanding for to from commercially the an see viability just hemp of see the always hemp imported be used we My hemp hemp to going forward import that anticipating directly all was moving and and

you the we are genetically we forward So viability modifications from to hemp with plant and going commercial the this the that wondering United will moving that Canada we Europe? export aside technology know to moving which I the anticipation also would I'm States is there of on that understand made pretty to rapidly

Henry Sicignano

James I'll the say is General Tom Counsel this Company. for -- David

world. alone. the we will be world genetics the States to doing sourcing the ourselves around activity We will from around not United We're plants in and plants those market and limit

publicly wanted going we know also know ingredient, not don't cannabinoids, how producing that active regulate announced develop period hemp. naturally to develop to rather limit TAC are you We we capability that don't U.S. to out strip ourselves the plants So THC. to the THC zero the plans we the we same I

point working on and other view. metabolism under high than stronger than CBD weight one the a other of interesting, a these very may pharmaceutical use one more exponentially THCs know for medicinal super are you your you won't cannabinoids, get that or THCV high may We CBDV cannabinoids of XXX of loss is on but exponentially these it very, is XXX expressed medicinally. is CBDs cannabinoids there XXX medical ones known from not

parties look their forward ingredients we extraction third if products our and by pharmaceutical of inclusion those third for provider to be testing permissible. active So or parties unique processes the were by

Unidentified Analyst

in quick in the Last for? last mentioned XX Dr. help folks industry of doing another main those focus assuming the that on you were Rushton question the to scientists for know or so just scientists you additional board was bringing conference call general works in more than towards you hemp and hiring I'm

Henry Sicignano

couple know overlap brought tobacco for Actually hemp is formerly right is experience role and Dr. bit. on he's so into quite guy, hemp. been then primarily with consultant is primarily in regulatory you now who've have science work BAT, Swauger's his and and so we We tobacco, high-level tobacco, another on brought a other the of -- the scientists in a he

I So the guess is answer both.

Unidentified Analyst

XX tell company investor next of to how guys. your with with am to the and to Thanks an you look lot a happen be like forward exciting things just I the to in excited I'd guys that months. XX that

Operator

Our next from question Gregory, Private Derrick a Investor. comes

line is Your open.

Unidentified Analyst

side British-American the standpoint with met on calls license minimum research you commercial to were yet the get post proper commercial the lot yet And we nicotine research with tobacco given up well as doing low however that work XXth yet option. research with regarding license were that said and in denied but products. quite agreement nicotine BAT they questions concluded, and prior of recently then milestones the pick a restrictive we’re was high and July the the understanding as how the minimal they the the in none loyalties of commercial still on familiar from My agreement

Just curious if all you light unfolded? a little that how could on shed more

Henry Sicignano

$XXX,XXX say lot call towards last few in example of a having sort when the and have in a reasons couple bank or Big the importance learning deal month BAT fact negotiated we is deal here. less different Sure raising money fumes. and much $X point there’s me of we it some deal. the the of the underlying licensing us I in ago We than One million we so major you was with we BAT in substantially years let of mentioned in had so a things thing questions a of less for negotiate bank money four I than the had the Tobacco Company. this when that When the negotiated were think in bank the at matter

suggest for never were So reason that the I that want to would be place negotiated. that And terms again. in the

intend time position of next we going to the where strength monies the a one of bank. to we So have deals from negotiate negotiate those are substantial in we

should So one I thing say. that’s

inside But domain, the resources should heat-not-burn The say heat-not-burn product other behind that understanding thing other And so don’t it’s has have work from to the Philip of focus divisions understanding, particular that I is it. leaf from lots have. might again where BAT’s and and don’t changed expense understanding heat-not-burn in significantly has to is for let’s the division BAT call and got my Morris that any is information in I you and products. that my technologies and lots of it’s BAT my not division leaf distribution, I the development BAT of other public moved into and and devices,

I control for the it because us today. terms deal going had in That’s wasn’t to BAT we commercial am our good are a and us. a the call the deal us And with simply so technology backing of as of because lucrative coincidence that as neglected. for thing license we we strike could it is thing good were for Why happy a we

Unidentified Analyst

is British work combustible time strategy? point Tobacco this yet a follow-up table you chance on off a there got at American to in to I’ve is would or with a the consider that them we could

Henry Sicignano

if surprised to up working and future since we than levels technology Reynolds. purchased that at be perform if they anytime way minimally the be in BAT fact especially some wouldn’t would soon, I we comes FDA with Reynolds in license American happy non-addictive tobacco more in pass or we went mandate have to to and contained the

Operator

question Michael Culture, next comes with Our Inc. from Lew Custom

Your open. line is

Michael Lew

you with that levels you, me out Hi who is negotiations can I reaching pharmaceutical A interest, companies would color who you indicating you recent expressing that, of is who about negotiating Henry, Big can negotiations, Tobacco anything of great with, international are to you your of hear? PR piggyback color can love kind there. to interest, tell question tell to these me

Henry Sicignano

over history has those things. here. say can’t of any Tom I

of any right the those all we at in but are to behind can’t lead of unless say all don’t once. disclose we publicly negotiations market discussions entire we negotiations which that may detail First the now to any of broadly discussions its

Michael Lew

may be round? Okay know so involved is I round million, way in probably the exactly type go can’t that but say investor into that secondary means who the in same can’t of who you for $XX you the

Henry Sicignano

funds. were some. I were They were not million individuals they to funds, invest to able And they enough be were $XX sophisticated they guess

Operator

next question from comes Our with XXnd Tong Group Century. Collin

Unidentified Analyst

on get marketing Hi. why you I’m get strategy on a get that and Private plan work? to Investor, company. your smoker view shell. product I have VLN question, switch What question your the to product you not strategy app and to suppose MRTP using do the group from will think a

Henry Sicignano

there proprietors very am XX-year many XXXX my past. stores and initially grosser top in effective I the and single doing and at as independent by were products. And available smoke price at to Spirit a to XXXX of a with that sole and and at at Tobacco because in why? the cigarette every cigarette more shops. the we earned point. the higher of the premium that in was to work some product think sales in the product experience took they with least the Because country. American store on from tobacconist interest convenient marketing bit profit Company American during an it who Folk an Spirit and the Natural Because little grew sort in a grew tobacco manage Fe premiums the industry I a cases those And peer Santa brand market the

So they degree some have of exclusivity.

premium incentive we’re for stores another brands they other words sold So smokers to other from many convert that at stores.

is everywhere. For available which Marlboro, example, say

smoker gaining Spirit, So would shop to be Spirit exclusive be converted to not every that smoker would because or products, in was it American American in an owner that that an converting store a smoke products single person’s customer, only margin Marlboro available higher customer, to but he that community.

smoke obviously to from go likely would the stores product back We with we type then of the market all wind similar Nicotine -- would spread the United Low after distribution that so to brand market. are is product We ultimately with cigarettes to we to potential Those own high-end independent they convenient have they our selling stores be push with and time, some competitors the strategy. of license, to that majority grosser. at the up think would period at least attention. would at really have our to have tremendous the out competitors. That then to So premium product our States. But of and launch, those market initial our in shops would the where ability be to and important and sales the and Very a in outlets the there and force the go product

And I marketing, tar the they the XX% of as low light like U.S. mentioned of during smokers cigarette. of XX% call smoke terms in smoking. ultra to like or a stated smokers up the Now positioning American product, quit

nicotine to do pursuit conventional will registry Low to the or liquidity. non-addictive think give smoking Nicotine customers if able all much to try, that’s the perhaps Very need we’re if especially or cigarette. a decreasing So less XX% label as it pretty market to perhaps and our at We packs

Unidentified Analyst

as or other? as you licensing or alongside other yourself well do one it And is see own marketing the product each

Henry Sicignano

competitors. to both. our to and exactly attend our market and own our license brand right. technology Yes, that’s to our No, We products

Operator

Hamilton Black Our with comes Gold. next question from Ryan

Your line is open.

Ryan Hamilton

Yes, your gentlemen. the appreciate you really for Thank answers. call. I

-- about a of that bit talk early of it's negotiation. is And maybe are in big quite spin then yet these clearly talks asked that of of kind you've earlier callers of in of international One kind FDA kind tobacco nothing interest the companies reckon from and the Can negotiation of pharmaceutical international kind answered been tobacco, kind your kind you the retaliating, you’re kind your the of from little with stage. combating potential XXnd more Century? like the or the of would pharmaceutical company, you also, level particular? about companies some of you kind And of would if like of efforts big a interest idea Company

Henry Sicignano

and interesting. here they to to -- so been noncombustible the smokers its in time I take to will I’ve say -- mean are them $XX market publicly, what the I’ve great at be got FDA hasty, to over all lost well billion say be quick. and over Obviously all FDA's applauding plan. tobacco don't that, That’s made place same when should they've announcement. the they're we not maybe is want years products. idea cap, let's they're this to going migrate Then big companies a the good saying many go

to continue include can't obviously surprised solutions planned sell the to have the butter, I of are and mandate minds feverishly So, to they're to pretend able they're bread Big going to know solutions didn't to FDA Tobacco, to going work be their which Century. be internally I'd that and but XXnd products if the those

Unidentified Analyst

Big to mandate, company, if a were and just these rather you kind And FDA of saying, fact in more FDA, the evidence and like little opposed follow-up Century be Big out buy Tobacco to Altria, Big ahead up Tobacco with products, know I kind wouldn't yes, in licensing just and other know their maybe this kind may cigarette and curve? in Tobacco just question, with a to to of them -- of be that compliant in you with to or with guess come real not like reduced is want -- making be company kind say potential nicotine a it would Altria of the of of of companies out of work kind scientific and it doing some we've deal, the like like -- work favor of you've of a may with they we'll more a would control want and in -- you a coming in they've let's be company, of kind way a the companies would which the want and as seems had that, kind alright -- reckon of and them XXnd own bit that with hey,

Henry Sicignano

if all is… you're leaning mean here going to you're me kick my to questions, so anything Counsel here, me I asking General is I trying trouble, in get I can say me,

Unidentified Analyst

hear well. as love to I'd from Tom

Henry Sicignano

going that's own Tobacco we're end Yes, because so of the really-really-really do. and for Big day he'll tell why all share the the you going options or and -- of think table got going going Company, But the is Big we're terms why be those on of our considerable at of to sold in never exciting, to a what at open the is that's stock products, I've less we're is do licensing business are I to develop Tobacco I the this do, upside. day end in and than to we've

Operator

from Investor as Mild. a Private well. comes Chris question He's next Our

Unidentified Analyst

a camp for that laws Are that you I take questions, well you have Congress First, four kudos million want list? it the to -- to gives strength substance the tobacco with negotiations. hemp. with raised up the of been $XX does I've submitted give and familiar one one with to us because the control got you two

Henry Sicignano

point Chris? your What's initiatives. of number a quite There's

Unidentified Analyst

help, Congressmen they your… sellers the them the with and give pushing to need, anything that doing guys you to Are are information out through

Henry Sicignano

we're assured do politically by. Chris, We we rest can't not sitting on idly directly what but comment

Unidentified Analyst

same are Phillip the and Altria as out going Morris to Morris with their they're goes, the Altria company far $XX something? billion and burden even technology the though know both as And Phillip nicotine tobacco or that divided, both we still $XX industry so is up have by years trying billion come they remove and to to so XX genetic smokes is or to pay

Henry Sicignano

Altria, $XX having specify Well or year is nicotine denicotinize they're something billion the I them XX with about $XX any years assertion but I a that's the didn't for substantially genetically word modify nicotine some billion levels tobacco, then level. and -- Phillip to reduced sobriety guess think to both carefully to has product Morris

planned So want are again, out publicly and right than they're further the mandate important the that is else it's FDA's but the future products saying and all into non-combustible be anyone future direction -- to future the does. they

the I all the hard. and that's better hard better very shareholders working game this the So and certainly several faster think I've forward. I XXnd the most goes last and push very for stuff guess Washington for working of to we're public been weeks FDA Century the health in for and we're

Unidentified Analyst

moves on market. beneficial this mean in your hitting the the I products Yes, FDA faster more will be the for it

Henry Sicignano

right. Exactly

Unidentified Analyst

We licensing a of last $X.XX or during initial the payment two had dollars billion then [indiscernible] question deal. or licensing. talking of would royalty a for is, pack And hundreds agreements license cigarettes, or million upfront for is per a that mentioned $X.XX there be usually

Henry Sicignano

Phillip you sold a I know think math billion tobacco based a making if and you $XX you year cost that by and believe pack. that denicotinizing if it you $XX on being winds cigarettes a of they about projections Morris the the think I up I not, billion $X.XX take divided were what do to

So comply pack. be know U.S. $X.XX a hundreds the a sole a to it of billion charge of pack we would and wouldn't we for but a they millions a solution, year. at the be we were were that in pack about $X.X could $X.XX a dollars $X.XX If it

Unidentified Analyst

agreement mean initial upfront an I license the normally on payment. there's No

Henry Sicignano

to at royalty billion know. a the the running to day but of the $X.X Sure, a end pack equates of important number $X.XX that's

Unidentified Analyst

gentlemen think a fantastic I doing Right, I it appreciate you're job.

Henry Sicignano

we much, very joining thank you thank Well today, you. us appreciate you

Operator

Private question next from He's comes Our Investor. Glenn also Timberlake. a

is Your open. line

Unidentified Analyst

who Century some you for of for drug And will am an possible is and sell CBD And ask XXnd partnering when or companies is it venture. might purpose. other Century blog sell going oil they oil? guys any put some oil I last, XXnd medical buy some quantities test it there be employer's that some CBD a will out assurances to not CBD might informs from forms [indiscernible] about on CBD oil with and the for partnering companies website you specifics and might be in kind of informative explains and various CBD that do? your buyers that on when information medical complications questions will touched also of kind THC and of they be to the Also in what that they oil they're what be kind purposes properly for using able

Tom James

not answer against and front will Hi to here charge want one representations position is General in or stuff inclusion with the Counsel question and do, point we product. else of James such I do doesn't that's I'll as or to how Tom of any anything final couple we proprietary companies we tip and do We're of to grow to until of Glenn, this we’re share what active do unless that them parties as many to for to or be pharmaceutical we're you we're is But tip then third exactly FDA not not we products. or or advantage We're doing going we’re a DEA for We're will far very doing plants, what factors do we A do forward medical kind have here great as explained anything have relationships it we're Company. what rest is an to don't we never the FDA do what or the going of as entire has changes claims, consumer of announce talk what in other they're of spear about we’re other when what material. off that. from that industry to so you. to not to we’re gone how we them the does way. doing, its facing else claims That's we it, the unique do to provide earlier a medical point them our as plant do to to in to can here to their What do medical that. we're not don't we people anybody far until assured the making to plant, the and it's as do until of able moving those control because the and make do impact unique the as have provide psychiatric the won't as at of products and can make keep in view. the ingredient cannabinoids to. not studies and Because then they or and extract licenses studies

Unidentified Analyst

you or put properly about scientific CBD from don't also THC regarding they do. of you might out would And when And claim blog basis able oil sell CBD able do the versus explaining what be to to different be various specifics just form a oil? a to

Tom James

we or blogs to Glenn, other how we We or regulators it, specifically that the recognition or advice the advocate with the to the we're kind want think what partners where want involved. that we're we quality to can do we're are scenes happy looking doing to of of and product, do doing nor any appreciate we're that don't competitors do we behind for here do states things to the this that and other going positions be trying of doing that because nature very dealing don't off the rather major medical to from we'll and tip you actively our be what as we're involvement we're our

or give they to not do will moving are going lot a have guidance things We projections because to of as these parts. when happen

assured working rest hard we're well diligently very and what we're and doing very Just in very-very doing.

Operator

open. your Greg We will question take line Neumann, from next is Private a our Investor,

Unidentified Analyst

tobacco questions, is what of the expand on that are Thank at cannabis is on one's using time opportunity. two facilities what percentage gentlemen, that and to other have your manufacturing you, and is on question this Quick your ability your on I tobacco everything capacity facility. you congratulations cannabinoid

Henry Sicignano

and is I'm the the on a XX,XXX on answer. can sure I two say prepared not two seven to running the factory, to but shifts lines a I'm have have square up we basis. continuous and facility That's at it's foot not question days occasion now shift be idea that a we five plan run

know to products that, to an FDA. and total know our helpful be opportunity Modified the are have that factory order Tobacco have Risk own from say we've branded with is that's actually that in make embarrassed make a plenty capacity our our got or So too the proprietary when marketing we plenty with and order, is marketing I especially capacity broad? don't to do we for, Is proprietary happy that the that of and that capacity don't capacity do products right factory is would with that's we to really cigarettes MRTP and now fill to of if I I'm Products so

Unidentified Analyst

a hear spot, of to know taking you're that's advantage answer put I and on it. you that Yes, I mean didn't you, facility on great the yes, to want thank just I

them with for really as Canada. the those known well if cannabis the so now own I On cannabis they're in blend the a say thoughts in it’s patents any partner that you unless doing rights conduct of And known exclusive your right that possibly IV that genes, to a that license I you've on opens co-exclusive clinical a outside Laboratories, company you you door I and have U.S. of Canada, and it’s large trials company, guess consider And Phase cannabis, that trials and you XX% they're position oils. just would them in cannabis cannabis, for have with licenses, have partner they clinical U.S. great get then four Tetra and a the Anandia it granting Phase you to Canadian produce Altria got now, another changed have they're for doing Phase right a you production a could a you your Canadian of produce that in and And a to got it I've because I, rights a could them that. And and generally test Bio-Pharma. but do Phase well with the it a you a IV, or. on

Tom James

discussions we'll email of or to anybody. happy to to do certainly to world somebody time, we're a we're anybody, talk will always Greg. Please any active. business so and talk this feel we're whether active to is to happy of be partners we very results but lot on won’t us the with free them new. to we've very Greg, Tom, the around introduced depends

Unidentified Analyst

Be that's ahead and open you. my to to you. go questions, thank doing get that that, I'll Thanks,

Henry Sicignano

Thank you this joining afternoon. you very We much. appreciate

Operator

That everyone your does further conclude And Thank participation. there are no questions. conference. for today's you

disconnect. You may now

22nd Century (XXII) 11 Nov 172017 Q3 Earnings call transcript