“Under 1,000 Hours to Launch”

First Shipment of Approx. 9,000 Taat Cartons to Arrive in Ohio Nov 27, 2020, Additional 12.5 Tons of Base Material to be Processed - Seite 2

Before the end of October 2020, approximately 3,600 lb / 1,630 kg of finished Beyond Tobacco base material is to be transported from Taat’s Las Vegas, NV processing facility to its contract manufacturer (the “Manufacturer”), who also produces cigarettes for global and regional tobacco brands. It is anticipated that this shipment of Beyond Tobacco base material will allow for approximately 9,000 ten-pack cartons of Taat to be produced. After the material arrives at the Manufacturer’s facility for production, the Taat product will be manufactured and packaged in its newly designed packs. The finished cartons will then be arranged and wrapped on pallets to be stored in the Manufacturer’s warehouse facility, awaiting dispatch instructions for outbound shipment as directed by Taat. Based on current supply chain timelines, the Company anticipates that the initial retail inventory of Taat is to arrive at Ohio wholesalers’ warehouses by the end of November 2020, which will allow the wholesalers to fulfill orders from accounts in the convenience channel.

As of this writing the Company has 6,563 lb / 2,977 kg of unprocessed biomass in its Las Vegas, NV processing facility, with an additional 18,491 lb / 8,387 kg to arrive by Monday October 19, 2020. The aggregate total of this supply is sufficient to produce approximately 626,000 20-stick packs of Taat. Taat’s current processing bandwidth for the Beyond Tobacco base material is approximately 1,200 lb / 544 kg per day. The Company’s management believes that with its Beyond Tobacco base material production capacity and the Manufacturer’s production rate of up to 2,000 sticks per minute, Taat is favourably positioned to meet forecasted demand during its launch phase in Ohio. As initial batches of unprocessed biomass and finished Beyond Tobacco base material are “turned over”, the Company will seek to optimize all relevant workflows to increase efficiency and prepare to potentially scale its manufacturing pipeline upward in the near term.

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Taat Founder Joe Deighan commented, “In my previous businesses it was always very clear that the ability to run an efficient and reliable supply chain is a major factor that can affect your ability to operate profitably. Whether that may consist of ensuring that your distributors always have the inventory they need, or keeping an eye on the little expenses that can add up and affect your margins, knowing and mastering your supply chain is nearly as important as the actual product itself. In the past few months, we have built a rock-solid infrastructure for procuring biomass, processing it to make Beyond Tobacco, transporting it to the Manufacturer, producing and packaging Taat, and shipping it to our distributors who would then bring it to stores to put on their shelves. Now that we are within six weeks of our initial Taat inventory arriving in Ohio, the time has come to make sure we have everything we need to make our supply chain a well-oiled machine, which includes several tons of biomass to produce Beyond Tobacco. We estimate we can make more than 600,000 packs of Taat based on the supply of raw material we will have as of Monday. Accordingly, I believe it is safe to say that we are no longer in a ‘test’ phase, as we begin to produce a large quantity of inventory to distribute in our launch market.”