#1Ÿ 22ND CENTURY GROUP INVESTOR OVERVIEW October 2022 Nasdaq XXII#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. 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#3EXECUTING FOR GROWTH IN 3 LARGE MARKETS TOBACCO VLN® is the Only Combustible Modified Risk Tobacco Product Disruptive Plant Science and Intellectual Property CANNABIS Pharmaceutical CDMO and Best-In-Class Ingredients Platform HOPS Accelerating the Development of Proprietary Specialty Hop Varieties and Valuable Commercial Traits ■ Strong VLN® Chicago pilot results driving expansion in the ~$80 billion U.S. market¹ and +$800 billion global market² ■ 22ND CENTURY GROUP Announced expansion in Illinois, accelerated entry into ~$600 million Colorado market³, with favorable MRTP tax status ▪ Advancing additional U.S. and international markets to accelerate VLNⓇ growth ■ GVB acquisition in May '22 doubled corporate revenue, accelerates path to profitability in the $100 billion hemp/cannabis market4 Prineville world-scale extraction facility >20,000 kg/month Integrating XXII proprietary plant science Expanding white-label customer penetration Advancing hops plant science to deploy alkaloid technologies in a $680 billion global brewing market5 1. Grandview Research; https://www.grandview research.com/industry-analysis/us-tobacco- market#:~:text-The%20U.S.%20tobacco%20market%20size%20was%20est ted%20at%20USD%207 2. Foundation for a Smoke Free World; https://www.smokefreeworld. 3. Smoker Incidence Studies / Industry Data / XXII Internal Research 4. Grandview Research; https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market 5. Grandview Research; https://www.grandviewresearch.com/industry-analysis/beer-market n%20in%202022 20Nicotines OReport%20December%202021.pdf. 3#4Tobacco Hemp/Cannabis Hops Financials#5TRANSFORMING TOBACCO WITH VLNⓇ 60% of adult smokers indicate a likelihood to use VLN® based on perception studies¹. Discernable Adult Smoker Benefits 2,3 ▪ Reduced nicotine exposure and dependence ▪ Fewer cigarettes smoked per day ■ Reduced withdrawal symptoms ▪ Minimal or no compensatory smoking ▪ Increased number of smoke-free days Quit attempts doubled No increase in adverse effects in persons with mental health disorders ■ ■ VLN® is a UNIQUE 95% REDUCED NICOTINE CONTENT combustible cigarette alternative unlike any tobacco product available in the market today. What is VLNⓇ? How VLN® Helps Adult Smokers Science-Backed Research from Clinical Trials ■ ■ ■ 22ND CENTURY GROUP Proprietary, combustible cigarette made with tobacco that contains 95% less nicotine than conventional cigarette alternatives Familiar combustible product format that replicates the conventional cigarette experience including the sensory and experiential elements of taste, scent, smell, and "hand-to-mouth" behavior VLN® contains 0.5 mg of nicotine per gram of tobacco, an amount cited by FDA, based on clinical studies, to be "minimally or non-addictive". Lack of reward from nicotine creates a dissociation between the act of smoking and nicotine which helps adult smokers reduce the harm caused by smoking Since 2011, 22nd Century's reduced nicotine content cigarettes has been used in more than 50 independent scientific clinical studies conducted by universities and institutions. ▪ Studies have been largely funded by U.S. government agencies and are estimated to have cost over $100M 1. Based on consumer perception studies conducted by 22nd Century Group. 2. Eric C. Donny, Ph.D., Rachel L. Denlinger, B.S., et al. "Randomized Trial of Reduced-Nicotine Standards for Cigarettes." Oct. 2015. 3. Dorothy K. Hatsukami, PhD; Xianghua Luo, PhD, et al., "Effect of Immediate vs Gradual Reduction in Nicotine Content of Cigarettes on Biomarkers of Smoke Exposure." Sept. 2018. 5#6THE FIRST AND ONLY COMBUSTIBLE CIGARETTE AUTHORIZED BY THE FDA VLN America's Lowest Nicotine Cigarette 95% less nicotine. VLNⓇ contains 100% American Tobacco with 95% less nicotine. VLN° greatly reduces your nicotine consumption, and helps you smoke less. HELPS YOU SMOKE LESS VLN 95% LESS NICOTINE Nicotine is addictive. Less nicotine does NOT mean safer. All cigarettes can cause VLN- VIN MENTHOL VLN 95% LESS NICOTINE Nicotine is addictive. Less nicotine does NOT mean safer. All cigarettes can cause 22ND CENTURY GROUP FDA authorized VLN® King and VLN® Menthol King Modified Risk Tobacco Product application (MRTPA) on December 23, 2021. FDA added the data-driven claim "Helps You Smoke Less" and authorized all requested claims Rather than just shifting smokers to another highly addictive, nicotine-laden product, we are focused on helping smokers reduce their nicotine consumption and smoke less. "We know that three out of four adult smokers want to quit and the data on these products show they can help addicted adult smokers transition away from highly addictive combusted cigarettes." *Trade dress subject to change. - Mitch Zeller FDA Center for Tobacco Products 6#7VLNⓇ HAS MASSIVE GLOBAL MARKET OPPORTUNITY "Although 34% of people trying to quit smoking use pharmaceutical aids, most are not successful." John P. Pierce, PhD, Professor Emeritus at UC San Diego School of Medicine4 $ 853B Global Tobacco Market 2020¹ $717B ~70% Of adult cigarette smokers want to quit² Other¹ Combustible Cigarettes <10% Of adult smokers successfully quit² 0% 1. Foundation for a Smoke Free World; https://www.smokefreeworld.org/wp-content/uploads/2021/12/Global%20Trends%20in%20Nicotine%20Report%20December%202021.pdf. 2. https://www.hhs.gov/sites/default/files/2020-cessation-sgr-consumer-guide.pdf. 3. Chaiton, Michael; Diemert, Lori, et al. "Estimating the number of quit attempts it takes to quit smoking successfully in a longitudinal cohort of smokers." Jun. 2016. 4. https://acsjournals.onlinelibrary.wiley.com/doi/pdf/10.1002/cncr.31388#:~:text=Although%2034%25%20of%20people%20trying, Medicine%20and%20Moores%20Cancer%20Center. 16% Combustible cigarettes account for about 85% of the global tobacco market¹ 50% 22ND CENTURY GROUP 84% 100% ~30 Average number of quit attempts before success³ 7#8SUCCESSFUL VLNⓇ PILOT IN CHICAGO Confirms consumer demand for VLNⓇ and go-to-market strategies Commenced sales in 150+ Circle K pilot stores on April 11th Phase Phase 1: Initial launch, media support and general awareness Phase 2: Test marketing targeted offers to drive increased share through trial and repeat purchase Phase 3: Build share and expand launch to additional markets and retailers across the convenience, grocery, and drug store channels Status Exceeded internal expectations In process now TBD Lunch is served! CIRCLE K -100 CIRCLE X TOBACCO CLUB 22ND CENTURY GROUP ¹784 Maribor $84.89 $91.49 ISO 40 95% less nicotine Enjoy true tobacco satisfaction with 95% less nicotine-VLN helps you smoke less HELPS YOU SMOKE LESS Lite Lessine does NOT de and death MENTHOU VLN VLN 95% LESS NICO NE 95% LESS NICOTINE Lad L NOT mean Alates can cause#9COLORADO MARKET LAUNCH Decision to accelerate rollout to additional targeted markets based on success in Chicago pilot Population Total = 5.8MM (+1.0%) Adults = 3.1MM Adult Smokers = 568,000 More than 3,000 targeted stores Diverse Channel of Partners combination of retail and distribution partnerships targeting, convenience, tobacco, drug and military stores Total Cigarette Market Opportunity =~$600 M VLN® Pricing Premium pricing similar to Marlboro MRTP Tax Saving = $6.50 / carton 1 22ND CENTURY GROUP 9#10EXPANDED MANUFACTURING, VLN® GROWING PROGRAMS Scaling manufacturing and growing programs ■ ■ Completing a 25% capacity expansion, including a new production line Adding a second shift to enhance production throughput Contracted largest VLN® tobacco crop ever; plants tailored to be more disease resistant and generate higher yield 22ND CENTURY GROUP Opportunities to grow through further manufacturing expansion and licensing 10#11REGULATORY ENVIRONMENT FAVORS VLNⓇ ■ ■ ■ FDA continues to advance its proposed menthol ban and reduced nicotine mandate State and local governments taking direct action Submitted public comments in support of the FDA's proposed tobacco product standard for menthol in cigarettes 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. HELPS YOU SMOKE LESS SURGEON GENERAL'S WARNING Pregnamun bed ure Bin MENTHOL 22ND CENTURY GROUP VLN 95% LESS NICOTINE Nicotine is addictive. Less nicotine does NOT mean disease and death. safer. All cigarettes can cause NT 11#12Tobacco Hemp/Cannabis Hops Financials 12#13MONETIZING OUR POSITION IN HEMP/CANNABIS PLANT MODIFICATION BY ACCELERATING 22nd Century has demonstrated its ability to monetize proprietary hemp/cannabis plant lines necessary to achieve its full commercial potential. 22nd Century Group optimizes hemp/cannabis plant genetics and creates disruptive, proprietary stable commercial plant lines that deliver higher crop yield. ▪ Plant lines with optimized genetics for commercial farming methodologies Option to grow at scale indoors and outdoors Improved disease and pest resistance ▪ Ability to control the expression of CBD, THC, CBG, CBN, terpenes, and other cannabinoids is critical to financial returns and quality metrics ■ 22ND CENTURY GROUP ■ 13#14GVB ACQUSITION COMPLETES 22ND CENTURY'S B2B CAPABILITIES 22nd Century now provides the most complete hemp/cannabis solution, from receptor science and transformative plant genetics, to finished ingredients and CDMO formulated products that meet the most exacting standards required by global consumer products and pharmaceutical companies. 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 Ke Gene 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 22ND CENTURY GROUP 22nd Century offers an end-to-end, high-value add solution for leading nutraceutical, consumer products and pharmaceutical companies entering the ascendant cannabis market Thousands 14#15GVB OFFERS A DIVERSE RANGE OF BEST-IN-CLASS QUALITY 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 GVB has the capabilities to produce a large array of cannabinoids Compliant BSD H Gel Capsules H HO OH CBD Isolate CBD THC- Free Crude Gummies UK Compliant BSD CBN Isolate CBC Isolate CBDA Mints GVB White Label Contract Manufacturing Product Offering Tablets GUMMIES 30 GUMMIES 25 MG EACH NG EVCH [previrete] Topical GVB 22ND CENTURY GROUP GUMMIES 30 GUMMIES 25 MG EACH GVB GUMMIES 30 GUMMIES 25 MG EACH 32 WOLV DO CONVERT BANWIER Vape Pens 15#16WORLD-SCALE MANUFACTURING CAPACITY GVB operates three primary manufacturing facilities, which have recently been invested in and have significant capacity to support growth with very limited additional capital expenditure. The Company currently operates: ▪ Grass Valley, Oregon: 30,000 sq ft; refinement facility ▪ Las Vegas, Nevada: 40,000 sq ft; used for Private Label/Contract Manufacturing ▪ Prineville, Oregon: World-scale crude extraction capacity in excess of 20,000 kg/month GVB sources hemp from trusted agricultural partners who adhere to GVB's rigorous quality parameters. Refinement Facility | Grass Valley Private Label/Contract Manufacturing | Las Vegas 22ND CENTURY GROUP Crude Extraction | Prineville 16#17Tobacco Hemp/Cannabis Hops Financials 17#1822ND CENTURY'S HOPS VALUE PROPOSITION 22nd Century is leveraging its experience with tobacco and hemp/cannabis, a close hop relative, to accelerate the development of proprietary specialty hop varieties or valuable traits. 1 Introduce new agronomic traits to improve disease/pest resistance and plant architecture to increase crop yields in leading hop strains that are already well-accepted by the brewing industry 2 Increase hops content of hops active molecules that drive the beer industry, such as alpha and beta acids, plus new compounds like terpenoids and flavonoids not generally associated with hops to produce new, disruptive, unique, and proprietary aromatic hop flavor profiles 3 Increase hops content of active molecules with health and wellness applications as extracts/distillates in functional foods and beverages, nutraceuticals, and pharmaceuticals (Xanthohumol and 8-prenylnaringenin) Hops Growers PREMIUM QUALITY HOPS Hopsteiner SINCE 1845 YAKIMA VALLEY HOPS Industry Leadership HOP ABInBev RESEARCH COUNCIL DOL Haus des HOPFENS HAAS Consumer Goods and Nutraceutical Companies ★ Heineken P&G THORNEⓇ OP HEAD 1. HOP FARMS FARMS British Hop Association indena 22ND CENTURY GROUP Barth Haas HOPS DIRECT SWANSON USA HOPS Nature's way 18#19KEY INITIAL HOPS OPPORTUNITIES Application Agronomic traits/powdery mildew, downey mildew, fusarium, and wireworm (disease resistance/pest resistance) Architecture traits/ratio cone/biomass and lupulin density Consumer traits/Alpha and Beta acids beer are industry drivers Terpenoids/flavonoids (oils) are new flavor drivers Xanthohumol and 8-prenylnaringenin potential nutraceuticals and pharmaceuticals Targeted Benefit Crop loss can be as much as 30% of the yield depending on region and year Success can generate 20-60% increase in yield 22ND CENTURY GROUP Stabilize the content and tailor to meet specific requirements from brewers This trait may have a more significant impact creating new disruptive, unique and proprietary aromatic hops flavor profiles for the brewing industry. Addressing a broad range of opportunities including managing anxiety, inducing calm, addressing sleeping disorders, resolving stomach problems, and other wellness applications 22nd Century is actively engaged in discussions with multiple hops growers and consumer product partners to develop specific desired traits. 19#20Tobacco Hemp/Cannabis Hops Financials DE 20#21SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS 2Q 2022 2Q 2021 Net Revenues $14.5M $8.4M Gross Profit $892K $448K Gross Profit Margin¹ 1. Gross profit margin is calculated by dividing net revenues by gross profit. 6.1% 5.3% +73% QOQ Net Revenues; $4.5M due to acquisition of GVB 80 BPS increase YoY gross profit margin 22ND CENTURY GROUP Operating Loss $(10.5) M $(6.6)M 21#22SECOND QUARTER 2022 FINANCIAL HIGHLIGHTS Net revenues Gross Profit Gross Profit Margin 6/30/2022 $ 10.0M¹ $ 1.0M² 10.0% Tobacco 6/30/2021 $ 8.3M $ 0.5M 5.3% Change 19% 99% 470 bps 1. Revenue from tobacco related products was $10.0 million, an increase of 19% from 2021. 2. Tobacco gross profit margin increase QoQ reflects favorable change in mix of tobacco contract manufacturing volumes. 3. Reflects operations of GVB for approximately half of the second quarter; prior period hemp/cannabis is nil. 4. Excluding the impact of the GVB acquisition, which included $1.0 million of inventory step-up amortization, hemp/cannabis gross profit margin would have been approximately 22%. 22ND CENTURY GROUP Hemp/Cannabis² 6/30/2022 $ 4.5M $(0.1M)³ (1.2%) ³,4 Acquisition of GVB expected to double consolidated revenues 22#23GVB ACQUISTION PRELIMINARY PURCHASE PRICE ALLOCATION* Dollar amounts in millions Current assets, excluding inventory Inventory Other assets Property, plant & equipment and ROU lease asset Goodwill and intangibles* Accounts payable and accrued expenses Leases and other liabilities Bridge loan Fair value of net assets acquired Acquisition Date May 13, 2022 $ 3.4 $5.3 $ 1.1 $8.9 $44.2 ($ 3.9) ($ 1.3) ($ 4.3) $53.4 22nd Century Group, Inc. * Reflects provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as the Company is completing the valuations that are required to allocate the purchase price in areas such as property and equipment, intangible assets, deferred taxes and goodwill. As a result, the allocation of the provisional purchase price may change in the future, which could be material. 23#24SUMMARY BALANCE SHEET ITEMS Dollar amounts in millions Cash and cash equivalents¹ Total assets² Total liabilities Total shareholders' equity 1. Cash and cash equivalents includes short-term investment securities. 2. 2022 figure includes recognition of $44.2m of goodwill and intangibles in connection with the acquisition of GVB June 30, 2022 Balance sheet date as-of: $ 26.3* $ 119.4 $ 20.0 $ 99.4 December 31, 2021 $ 48.7 $ 76.0 $9.9 22ND CENTURY GROUP $ 66.1 *Additional $35M gross proceeds capital raise for growth from registered direct offering in July 2022 24#25CONTACT INFORMATION INVESTOR RELATIONS 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] 22ND CENTURY GROUP