Taat Announces Closing of CAD $6.75M Private Placement with Group of Investors including Ms. Debbie Chang

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VANCOUVER, British Columbia, Oct. 09, 2020 (GLOBE NEWSWIRE) -- TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTCQB: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “Taat”) is pleased to announce that it has closed a private placement of CAD $6,750,000 (the “Placement”) in escrow, subject to the Company confirming the delivery of the closing proceeds. The subscribers to the Placement were a group of investors (the “Group”) including Ms. Debbie Chang, co-founder of Horizons Ventures, in her personal capacity. The Placement is intended to help bolster the Company’s early-stage performance as it prepares to launch Taat, a tobacco-free and nicotine-free combustible analogue to cigarettes, in the United States later this quarter.

Beyond Tobacco, the base material of Taat, has been meticulously engineered to mimic the experience of smoking actual tobacco despite containing no nicotine or tobacco whatsoever. Taat is offered in a combustible format with a realistic tobacco scent and taste created using a patent-pending refinement technique for the Beyond Tobacco base material. In mid-2020 retail market testing in California and Nevada, legal-aged current tobacco smokers who sampled Taat for the first time indicated there were no significant experiential differences in comparison to smoking traditional tobacco cigarettes. The Company anticipates this similarity can be attractive to the large segment of the global population of 1.3 billion tobacco users that aspires to leave nicotine behind. For clarity, Taat is intended only for use by current tobacco smokers of legal age who would prefer the option of a nicotine-free combustible product. Marketing will be directed exclusively towards this segment, as it is not Taat’s objective to recruit new smokers.

In an October 6, 2020 press release issued by Taat, it announced an initial purchase order after entering into a binding distribution agreement with ADCO Distributors, Inc., a large tobacco wholesaler in the state of Ohio, where Taat is to be launched. Under this distribution agreement, Taat would be distributed to convenience channel retailers among top global cigarette brands (e.g., Marlboro, Newport, Camel) across Taat’s launch market.