Christina Lake Cannabis to Become Exclusive Developer and Distributor of TAAT and Beyond Tobacco in Canada

VANCOUVER, British Columbia, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE:CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) is pleased to announce that it has entered into a memorandum of understanding (“MOU”) with TAAT Lifestyle & Wellness Ltd. (“TAAT”) (CSE: TAAT) dated February 24, 2021 in which CLC is to develop and distribute the TAAT nicotine-free and tobacco-free alternative to tobacco cigarettes for the Canadian market. The MOU grants CLC exclusive rights to develop and distribute TAAT in Canada for a two-year renewable term, and provides for budgets, schedules, and contributions of both parties for each stage of product development to be agreed upon by way of written agreements to set out specific stipulations for each stage. After TAAT was first announced in mid-2020, considerable interest was received from legal-aged Canadian smokers who appear to be drawn to the unique properties of TAAT as a tobacco-free and nicotine-free product, as well as its low price point compared to tobacco cigarettes (e.g., USD $3.99 for TAAT in Ohio vs approx. USD $7.00 for Marlboro). The base material of TAAT is known as Beyond Tobacco, a proprietary hemp formulation which undergoes a 14-step process to taste, smell, and smoke similarly to actual tobacco. As Canadian law generally requires hemp products and derivatives to be produced, distributed, and sold through entities licensed by Health Canada, CLC’s status as a Licensed Producer under the Cannabis Act could enable TAAT to be produced and sold in the Canadian market, where the tobacco industry is valued at CAD $19.1 billion¹.

Carried by tobacco retailers in Ohio as of December 2020, TAAT has seen considerable success to date in the tobacco category in the United States. In a press release dated January 29, 2021 TAAT announced that 60% of retailers who carried its products for three or more weeks had already placed reorders, a velocity regarded by the firm’s Chief Revenue Officer Tim Corkum as an “outlier” in comparison to the dozens of tobacco brands he has launched in Canada and the Caribbean². After launching the TAAT online store on February 17, 2021, availing the product to the majority of smokers aged 21+ in the United States, TAAT sold more than CAD $50,000 worth of product in 48 hours³. Although TAAT ran digital advertising campaigns for its online store targeted towards smokers aged 21+ in the United States, more than 16% of all users visiting the TAAT online store to date were from Canada. Based on this level of interest, TAAT began to explore potential supplier relationships with a Licensed Producer in Canada, ultimately leading to its memorandum of understanding with the Company.