TAAT LIFESTYLE & WELLNESS LTD. Signs Letter of Intent to Acquire Leading U.S. Hemp Cigarette Brand Sold In Over 1,600 Retail Locations

Oregon-based Redwood is a “seed-to-smoke” hemp company that offers a lineup of premium, high-quality smokable products made with its own organically-grown hemp. Redwood’s product selection is carried in more than 1,600 U.S. retail stores, which the Company intends to leverage to make Beyond Tobacco available to a wider audience of retailers upon its much-anticipated launch planned to occur in Q4 2020. As a result of the proposed acquisition, TAAT plans to benefit from Redwood’s broad production capacity and possibly reduce the cost of producing Beyond Tobacco by as much as 50%. Further information regarding this acquisition will be shared in a public conference call to be held at 3:00 pm PDT / 6:00 pm EDT today.

LAS VEGAS and VANCOUVER, British Columbia, July 13, 2020 (GLOBE NEWSWIRE) --  TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (FRANKFURT: 2TP2) (the “Company” or “TAAT”) is pleased to announce that it has entered into a letter of intent dated July 10, 2020 to acquire Redwood Reserves Ltd. (“Redwood”), one of the largest and best-established U.S. hemp cigarette brands, for an acquisition price consisting of $1,155,000 and 2,390,000 common shares in the capital of TAAT. This strategic acquisition is intended to provide more cost-effective manufacturing capacity to TAAT, in addition to gaining an established direct distribution network through which Beyond Tobacco cigarettes are planned to be supplied to Redwood’s extensive network of retailers. As Redwood’s product line is currently being sold in more than 1,600 U.S. smoke shops and convenience stores, carried by several distributors, and sold through Redwood’s online store, the Company will realize cash flow from Redwood’s continued business activities following the proposed acquisition. Additionally, the Company believes that Redwood’s product offerings can complement TAAT’s Beyond Tobacco product upon the planned Q4 2020 product launch.

Subject to a definitive agreement, which the parties have agreed to proceed with diligently and in good faith to negotiate and settle the terms for execution on or before July 31, 2020, TAAT will acquire 100% of Redwood, resulting in Redwood becoming a 100% subsidiary of the Company. The acquisition of Redwood is subject to customary conditions of closing, including without limitation, the satisfactory completion of due diligence by both parties and the receipt of applicable regulatory and governmental approvals.