22nd Century Group, Inc. (Nasdaq: XXII), a leading biotechnology company focused on improving health through advanced plant technologies in reduced nicotine tobacco, hemp/cannabis, and hops, announced today its second exclusive license, manufacturing, and distribution agreement in the hemp/cannabis industry, this time with Old Pal, LLC. Old Pal is a well-known consumer hemp/cannabis firm that began in California and is now present in eight states.
Old Pal has signed a strategic agreement with the 22nd Century to license, manufacture, and distribute hemp/cannabis products. This partnership allows Old Pal to concentrate on creating quality products, engaging with customers, and marketing. At the same time, the 22nd Century provides access to mass market channels that need new, high-margin, and fast-selling products to satisfy the increasing demand from consumers. According to James A. Mish, the CEO of the 22nd Century, this model benefits both companies.
Old Pal, launched in 2018, has quickly garnered recognition for its nostalgic branding. In addition to its growing range of apparel, accessories, and home goods, Old Pal has firmly established itself as a significant cultural figure in the cannabis world. The exclusive license with 22nd Century will cover Old Pal branded non-Delta-9 THC, hemp-derived cannabinoid consumer products, and accessories.
The Old Pal agreement follows the successful model of the 22nd Century's integrated production, sales, and distribution deal with Cookies in the hemp/cannabis industry. This agreement will utilize the 22nd Century's top-of-the-line formulation, ingredient, and manufacturing infrastructure. Additionally, the Company's turn-key sales and distribution platform for alternative consumer products will provide a complete solution for bringing the product to market.
The Company predicts that its agreements with Cookies and Old Pal will result in over $140 million in revenue with high-profit margins throughout the contract period. Furthermore, the 22nd Century is progressing in distributing these products through more than 200 wholesale distributors in the United States. The Company is also actively searching for new exclusive license opportunities with other brands in the hemp/cannabis industry to expand its reach.
Photo by Daniel Seßler on Unsplash
