#1A HOSITORY BOA Posty JORIN ON IN NELOOW $537 86.96 WOMEN IN NZA MYE LES MINE NZA NZA 5831 NOWS NOA S Ÿ 22ND CENTURY GROUP THIRD QUARTER EARNINGS PRESENTATION NOVEMBER 8, 2022#2CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements concerning our business operations, and financial performance and conditions, as well as our plans, objectives, and expectations for our business operations and financial performance and conditions that are subject to risks and uncertainties. All statements other than those of historical fact are forward-looking statements. These types of statements typically contain words such as "aim," "anticipate," "assume,” “believe," "could," “due," "estimate," "expect," "goal," “intend,” “may,” “objective," "plan," "potential," "positioned," "predict," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends. Forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business, the industry in which we operate, and our management's beliefs and assumptions. Ž 22ND CENTURY GROUP These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those estimated. The contents of this presentation should be considered in conjunction with the risk factors, warnings, and cautionary statements contained in the Company's annual, quarterly, and other reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law. 2#3FOCUSED ON COMMERICAL TRANSFORMATION IN 3Q Revenue, net (in millions) Tobacco $7.8 M 3Q21 Hemp/Cannabis $8.0 M 4Q21 +149% YoY $9.0 M 1Q22 $14.5 M $4.5 $10.0 2Q22 $19.4 M $7.9 $11.5 3Q22 3Q '22 gross profit margin includes ~$1 million inventory adjustment related to the GVB acquisition accounting. ■ Leveraging exceptional VLNⓇ pilot results, moving aggressively into multi-sate commercial launch program ■ 22ND CENTURY GROUP ■ ■ Focused on launching VLN® in at least 12 to 15 states within the next 12 months - now in 5 states with proven launch template Advancing GVB's capabilities to further differentiate its products, access new market opportunities and drive growth Every 1% share of the U.S. retail market equates to approximately $800 million in retail sales, which is $500 million in revenue for a premium cigarette manufacturer. Passed NSF International Audit for pharma-grade manufacturing Submitted Drug Master File to FDA to produce and supply APIs for medical and pharmaceutical industry Pursing ICH Q7 international certification Focused on revenue opportunities and expanding margins Plan in place to generate positive cash flow and EBITDA from GVB's operations to fund hemp/cannabis franchise growth and VLNⓇ expansion 3#4Tobacco Hemp/Cannabis Financials#5IMPLEMENTING VLNⓇ SALES LAUNCH BLUEPRINT IN NEW MARKETS Leveraging exceptional pilot results and moving aggressively into commercial launch program Phase Phase 1 - Initial Pilot: Initial launch, media support and general awareness Phase 2 - Targeted Offers: Test marketing targeted offers to drive increased share through trial and repeat purchase Phase 3 Go to Market: Build share and expand launch to additional markets and retailers across the convenience, grocery, and drug store channels Status Exceeded internal expectations Exceeded internal expectations Refined and accelerated strategy; expanded to 5 states; adding new distribution and retail partners 22ND CENTURY GROUP Exceptional pilot results documented the power of "Awareness, Education, and Trial" go-to- market strategy Adding distribution partners with extensive retail coverage for each new state launch Expanding retail channel with new logos willing to commit to a "go where we go" relationship LO 5#65 CURRENT STATES = ~7% OF U.S. CIGARETTE SALES At approximately 382M packs sold, just a 1% market share equates to ~3.8M VLNⓇ packs sold 1. 2. Utah Total cigarette pack sales: 45M¹/$373M² % of adult smokers: 7.9% Colorado Total cigarette pack sales: 130M / $1,039M % of adult smokers: 13.5% Arizona Total cigarette pack sales: 160M / $1,364M % of adult smokers: 14.9% New Mexico Total cigarette pack sales: 48M/$405M % of adult smokers: 16.0% Pack Volume Retail Sales Source: CDC; Current Cigarette Use Among Adults (Behavior Risk Factor Surveillance System) 2019; World Population Review Cigarette Prices by State; Internal Documents Ž 22ND CENTURY GROUP Illinois Total cigarette pack sales: 253M / $2,569M % of adult smokers: 14.5% 22nd Century Group intends to grow its U.S. launch, total of 12 to 18 states within the next 12 months. 6#7JUST 18 STATES = 53% OF TOTAL U.S. CIGARETTE SALES At approximately 5.0B packs sold, just 1% market share equates to ~50M VLNⓇ packs sold Potential VLN® Distribution: MRTP States + Adjacent State Opportunities Prospective Priority Launch State Favorable MRTP Excise Tax Statute State AZ CO* CT* FL GA IL IN KY* MI* NC* NM* NY OH SC TX UT* WA* WI Total Source: CDC; Current Cigarette Use Among Adults (Behavior Risk Factor Surveillance System) 2019; World Population Review Cigarette Prices by State; Internal Documents *State with MRTP Tax Benefit % of Adult Smokers 15% 14% 12% 15% 16% 15% 19% 24% 19% 19% 16% 13% 21% 18% 15% 8% 13% 15% Pack Volume (Packs, M) 160M 130M 65M 513M 398M 253M 328M 295M 351M 500M 48M 180M 467M 215M 736M 45M 124M 184M 4,989M 22ND CENTURY GROUP Retail Sales ($B) $1.4B $1.0B $0.8B $3.9B $2.5B $2.6B $2.3B $2.0B $2.9B $3.3B $0.4B $2.2B $3.7B $1.5B $5.6B $0.4B $1.3B $1.6B $39.4B 7#8TARGETED APPROACH TO HIGHEST VOLUME AND HIGHEST POPULATED COUNTIES TO MAXIMIZE RESOURCES AND REACH Mesa 4.0% A significant proportion of adult smokers can be reached by focusing on a small number of counties within a state, allowing us to market VLN® in a streamlined and efficient manner. Colorado - 64 Counites Larimer 5.3% Boulder 3.596 Jefferson 10.746 Colorado Weld 5.9% Arapahoe 11.8% El Paso 13.6% Pueblo 4.8% Population Density Population % within top 10 counties # of counties to reach 80% of population % of counties to reach 80% of population Concentration of Adult Smokers % of adult smokers within top 10 counties # of counties to reach 80% of adult smokers % of counties to reach 80% of population 82.5% 10 15.6% 78.7% 11 17.2% https://www.fox21news.com/news/colorado-first-to-sell-low-level-nicotine-cigarettes-authorized-by-fda/ ▾ Weather NEWS Sports by: Alina Lec Posted: Oct 5, 2022/12:36 PM MDT Updated: Oct 5, 2022/01:15 PM MDT SHARE f Colorado first to sell low- level nicotine cigarettes authorized by FDA Mornings 13 Features ▾ VLN cigarettes from 22nd Century Group In to receive a Modified Risk Tobacco Product (FDA). They contain 95% less nicotine than Audience Ⓡ consumption to help smokers smoke less, 31,025 national "There's a revolutionary new option availa31,025 local served Abou KDVR-TV (Denver, CO) - FO Morning News at 7:00am Source: CDC; Current Cigarette Use Among Adults (Behavior Risk Factor Surveillance System) 2019; World Population Review Cigarette Prices by State; Internal Documents Television (COLORADO SPRINGS) - Colorado is the fir addictive levels of nicotine and are clinicalAired on October 5, 2022 at 7:05 AM on KDVR-TV Denver, CO, United States KXRM-TV (Colorado Springs, CC FOX 21 Morning News at 6 95% less nicotine Television Aired on October 5, 2022 at 6:06 AM on KXRM-TV (Colorad Colorado Springs, CO, United States VLN VLN Audience Ⓡ 2,689 national 2,689 local FOR YOUR STY VLN VIN VLN VLN KO FILTER IN SHLESSAGGI Helps you smoke less Edgefield ALERT TO SELL LOW-NICOTINE CIGARETTES DO 14 08/15/2022 PRESIDENT BI 22ND CENTURY GROUP Convenience Store News Bestows 35 Products With 2022 Best New Products Awards Comfort and indulgence items dominate this year's crop of honorees. Susan Durtschi, Past Times Marketing CHICAGO-The winners of this year's Convenience Store News Best New Products Awards represent a dynamic lineup of comfort and indulgent snacks, yummy foodservice offerings, and on-trend beverages. While healthy eating is still an important consume trend, this year's entries focused more on comfort foods and indulgence, compared to previous years when new product entries emphasized attributes such Convenience Store News BEST NEW PRODUCTS AWARDS 2022 8#9REGIONAL RATIONALE: COVERING FOUR CORNERS Accelerating rollout in additional targeted markets Population Total = 18.5MM Adults = 13.4 MM Adult Smokers= 3.0 MM More Than 7,400 Targeted Stores Distribution Network Traditional and Non-Traditional Distribution & Retail Partners Source: Internal Documents; World Population Review Cigarette Prices by State Total Cigarette Market =~$3.2 Billion 3 States with MRTP Tax Saving $6.50 / carton $5.00/ carton $4.25 / carton 8/5 NM UT BERNARD DEPARTMENT Ž OF THE 22ND CENTURY GROUP BUREAU OF LAND UTAH COLORADO ARIZONA NEW MEXICO 1992 INTERIOR CADASTRAL SURVEMENT 9#10SCALING MANUFACTURING & GROWING PROGRAMS TO MEET ANTICIPATED DEMAND FOR VLNⓇ ▪ Completed a 25% capacity expansion, including a new production line Added a second shift to enhance production throughput VLN® 2.0 tobacco seeing ~30% higher yields, enhanced quality leaf, improved disease resistance, reduction in nutrient requirements, and increased stability across various environments and geographies. Successful first grow in Chile; expanding growing acreage in 2023 and adding southern hemisphere acreage to secure year-round growing capabilities Ž 22ND CENTURY GROUP 10 9#11■ REGULATORY ENVIRONMENT FAVORS VLNⓇ ■ FDA continues to advance its proposed menthol ban and reduced nicotine content mandate. ▪ State and local governments are taking direct action. VLN® Menthol King cigarettes could be the only combustible menthol cigarette on the market exempt from the menthol ban. The science shows a reduced nicotine mandate would help all smokers more easily quit smoking or migrate to less toxic products. 22nd Century's research cigarettes continue to fuel numerous independent scientific studies to validate the enormous public health benefit identified by the FDA from implementing a nicotine standard. VLN MENTHOI VLN 95% LESS NICOTINI Nicotine is addictive. Less nicotine does NOT mean safer. All cigarettes can cause disease and death Ž 22ND CENTURY GROUP HELPS YOU SMOKE LESS VLN 95% LESS NICOTINE Nicotine is addictive. nice does NOT mean#12Tobacco Hemp/Cannabis Financials 12#13GVB ACCELERATES HEMP/CANNABIS REVENUE GROWTH Grow to positive cash flow and EBITDA from GVB operations Number of Participants Plant Profile / Roadmap Canna Metrix CannaMetrix's high- throughput proprietary, human cell-based assay technology serves as a roadmap for developing new plant lines with tailor-made profiles. Few Plant Biotechnology KeyGene Established proprietary bioinformatics platform and cutting-edge molecular breeding platform in partnership with KeyGene; capabilities include genetic engineering and plant line development Dozens (Few are advanced) Plant Breeding & Trials Extractas Bioscience Multiple partnerships with top global breeders provide 22nd Century with both northern and southern hemisphere, indoor and outdoor, year- round plant breeding and trial capabilities. Few Ingredient Extraction, Purification, and Finished Products GVB BIOPHARMA™ Hemp-derived active ingredients extractor and finished products manufacturer providing customers with bulk ingredients and white label products Dozens (Very few are reputable and with scale) Commercial Partners Ÿ 22nd Century offers an end-to-end, high-value add solution for leading nutraceutical, consumer products, and pharmaceutical companies entering the ascendant cannabis market. The addition of GVB positions 22nd Century as one of the largest, if not the largest, CBD suppliers to the North American merchant market. Thousands 22ND CENTURY GROUP 13#14The Company currently operates: Prineville, Oregon: World-scale crude extraction capacity in excess of 15,000 kg/month at full capacity (operational December 2022) WORLD-SCALE MANUFACTURING CAPACITY Investing modest additional capital expenditure to significantly expand capacity and revenue support growth ■ ▪ Grass Valley, Oregon: 30,000 sq ft; refinement facility ▪ Las Vegas, Nevada: 40,000 sq ft; used for Private Label/Contract Manufacturing GVB sources hemp from trusted agricultural partners who adhere to GVB's rigorous quality parameters. Refinement Facility | Grass Valley Ž Private Label/Contract Manufacturing | Las Vegas 22ND CENTURY GROUP Crude Extraction | Prineville 14#15■ ■ ■ ■ POSITIONING GVB FOR GLOBAL LEADERSHIP Capacity expansion plus industry leading certifications positions GVB as the supplier of choice. Prineville extraction facility will greatly reduce crude costs and support increased isolate margins at our Grass Valley facility. Prineville to come online during Q4 2022 / Q1 2023 and steadily scale production volumes throughout the year. FDA has committed to advance regulatory standards and product recommendations on CBD use in consumer and nutraceutical products. This standard will open the massive consumer products market that is already developing - 22nd Century will lead in certified facilities. Pursuing pharmaceutical grade API and additional certifications differentiating GVB distillates and isolates Ž 22ND CENTURY GROUP 15#16GVB OFFERS OF BEST-IN-CLASS CANNABINOIDS AND CANNABINOID INFUSED PRODUCTS Cannabinoid Cannabidiol Isolate GVB BIOPHARMA™ Cannabidiol Broad Spectrum Distillate Cannabigerol Isolate Key Cannabinoids Cannabidiol Crystal Resistant Distillate Compliant Broad-Spectrum Distillate Cannabidiol THC-Free Crude Cannabinol Isolate UK Compliant Broad-Spectrum Distillate Cannabidiolic Acid Cannabichromene Isolate Abbreviation CBD Isolate CBD BSD CBG Isolate CBD CRD Compliant BSD CBD THC-Free Crude UK Compliant BSD CBN Isolate CBC Isolate CBDA CBD BSD Tinctures CBG Isolate CBD CRD Compliant BSD GVB has the capabilities to produce a large array of cannabinoids Gel Capsules H HO OH CBD Isolate CBD THC- Free Crude Gummies UK Compliant BSD CBN Isolate CBC Isolate CBDA GVB Mints GUMMIES 30 GUMMIES 25 MIG EACH White Label Contract Manufacturing Product Offering Tablets WO EVCH NO COPPIVIE Topical Ž GUMMIES 30 GUMMIES 25 MG EACH ORVIWIED 22ND CENTURY GROUP GVB GUMMIES 30 GUMMIES 25 MG EACH 3P NOV DOWWIER Vape Pens 16#17Tobacco Hemp/Cannabis Financials ர் n DE 17#18THIRD QUARTER 2022 FINANCIAL HIGHLIGHTS 3Q 2022 3Q 2021 Net Revenues $19.4M $7.8M Gross Profit 1. Gross profit margin is calculated by dividing gross profit by net revenues. $619K $292K Gross Profit Margin¹ 3.2% 3.7% Ž Operating Loss +148% QoQ Net Revenues: $7.8M due to acquisition of GVB - first full quarter of GVB revenue +112% increase QoQ gross profit 22ND CENTURY GROUP $(15.3)M $(7.6)M 18#19TOBACCO REVENUE & PROFIT BREAKDOWN Unit sales¹ Net revenue Gross profit Gross profit margin² 3Q 2022 1.6M $11.5M $636K 5.5% ■ Tobacco 3Q 2021 1.1M $7.8M $292K 3.7% Net revenue and gross margin expansion QoQ were primarily driven by: Volume increases in the number of cartons sold ■ Price increases Favorable mix, including export cigarettes ■ Change % 45% 48% 118% 180 bps 1. Tobacco unit sales volume is measure in cartons 2. Gross profit margin is calculated by dividing gross profit by net revenues 3. Contract manufacturing operations (CMO) Ž Opportunity for additional tobacco net revenue growth and margin expansion with: Increased sales volume of higher margin CMO cigarette customers 22ND CENTURY GROUP Accelerated VLNⓇ launch driving increased revenue and margin contribution from premium VLNⓇ products 19#201. 2. 3. HEMP/CANNABIS REVENUE & PROFIT BREAKDOWN Unit sales¹ Net revenue Gross profit ■ 3Q 2022 23,719 $7.8M $(17K) ■ Hemp/Cannabis 3Q 2021² 12,996 $6.3M $697K Net revenue growth QoQ primarily driven by: ■ Addition of GVB contribution Significant GVB organic revenue volume growth QoQ Q3 2022 pro forma gross margin was approximately 8.1% compared with 9.7% prior year. Change % 83% 25% NM³ Additional hemp/cannabis opportunity driven by: Ž 22ND CENTURY GROUP ▪ Organic growth reflecting continued strong customer demand Hemp/cannabis unit sales volume is measured as kilograms. GVB acquisition occurred on May 13, 2022. All prior period results are provided for illustrative purposes only. These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the futures. Refer to Q3 2022 Form 10-Q Note 2 of the Condensed Consolidated Financial Statements for description of pro forma adjustments as required under U.S. GAAP. Not meaningful; the percentage change is determined to be not meaningful to the analysis provided Increased profit margin from vertical integration with new Prineville crude extraction facility becoming fully operational 20#21GVB ACQUISTION Q3 '22 purchase price allocation - May 13, 2022 acquisition date (in millions) Current assets, excluding inventory Inventory Other assets Property, plant & equipment and ROU lease asset Goodwill Tradename Customer lists Accounts payable and accrued expenses Leases and other liabilities Deferred tax liability Bridge loan Fair value of net assets acquired Adjusted 3Q '22 $ 3.4 $5.3 $ 0.5 $ 12.6 $ 33.7 $ 4.6 $5.8 ($ 2.9) ($ 2.6) ($ 2.7) ($ 4.3) $53.4 Ž 22ND CENTURY GROUP During 3Q '22, the fair values of assets acquired and liabilities assumed were adjusted to reflect ongoing acquisition valuation analysis procedures of property and equipment, intangible assets, deferred taxes, and working capital adjustments. These adjustments resulted in a combined reduction to goodwill of $10.5M. The amounts reported are considered provisional as the Company is finalizing the valuations that are required to allocate the purchase price through the measurement period, which remains open as of September 30, 2022. As a result, the allocation of the provisional purchase price may change in the future, which could be material. 21#221. SUMMARY BALANCE SHEET ITEMS (in millions) Cash and cash equivalents¹ Total assets Total liabilities Total shareholders' equity Balance sheet date as of: 3Q 2022 4Q 2021 $ 43.7 $48.7 $ 142.2 $76.0 $ 21.1 $9.9 $ 121.1 $66.1 Cash and cash equivalents includes short-term investment securities. ● ● ● Ž 22ND CENTURY GROUP Strengthened balance sheet during 2022 Strong working capital as of September 30, 2022 In October 2022, paid outstanding principal and interest of certain GVB Bridge Notes; expected refinancing of remaining portion Recognized $44.2M of goodwill and intangible assets as a result of GVB acquisition Strength of balance sheet supports our near-term strategic initiatives including accelerating VLN® launch, meeting increased customer demand for GVB products, and continuing to prioritize key R&D projects to support our three plant science businesses. 22#23FOCUSED ON INITIATIVES TO DRIVE GROWTH Revenue, net (in millions) Tobacco $7.8 M 3Q21 Hemp/Cannabis $8.0 M 4Q21 +149% YoY $9.0 M 1022 $14.5 M $4.5 $10.0 2Q22 $19.4 M $7.9 $11.5 3Q22 ■ ■ Leveraging exceptional VLNⓇ pilot results, moving aggressively into multi-sate commercial launch program Ž ■ 22ND CENTURY GROUP ■ Focused on launching VLN® in at least 12 to 15 states within the next 12 months - now in 5 states with proven launch template Advancing GVB's capabilities to further differentiate its products, access new market opportunities and drive growth Every 1% share of the U.S. retail market equates to approximately $800 million in retail sales, which is $500 million in revenue for a premium cigarette manufacturer. Passed NSF International Audit for pharma-grade manufacturing Submitted Drug Master File to FDA to produce and supply APIs for medical and pharmaceutical industry Pursing ICH Q7 international certification Focused on revenue opportunities and expanding margins Plan in place to generate positive cash flow and EBITDA from GVB's operations to fund hemp/cannabis franchise growth and VLNⓇ expansion 23#24Questions & Answers Q A 24#25CONTACT INFORMATION INVESTOR RELATIONS & MEDIA CONTACT Mei Kuo 22nd Century Group, Inc. Director, Communications & Investor Relations [email protected] Matt Kreps Darrow Associates Investor Relations T: 214-597-8200 [email protected]