REPEAT - TAAT Announces 2022/2023 Financial Outlook, Strategic Priorities, and Organizational Alignment - Seite 2

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TAAT Strategic Plan Action Items for 2022 and 2023

• The Company will continue to commercialize TAAT as a “category-creating” brand for nicotine-free and tobacco-free options suiting the preferences of adult smokers, capitalizing on its “early-mover advantage” in the emerging area of alternatives to traditional tobacco products;
• TAAT plans to broaden its domestic distribution in the United States through its newly acquired distribution arm in addition to leveraging its placements in convenience stores and gas stations in major national and global chains to introduce TAAT into additional brand-name consumer outlets;
• To introduce TAAT into new international markets, the Company is continuing to identify prospective expansion opportunities based on attractive market dynamics and receptive regulatory environments; and
• Gross product margin is to be maximized with continued emphasis on enhanced technologies, more expansive and efficient distribution networks, as well as the advanced V3 Beyond Tobacco formulation which is of significantly higher quality and more cost-effective to manufacture.

TAAT Formal Guidance for Revenue and Sales

• Anticipated revenues for the Company’s fiscal year ending October 31, 2022 are CAD $92,000,000;
• Projected loss on operations for the Company’s fiscal year ending October 31, 2022 excluding non-cash items is CAD $1,900,000; and
• The Company anticipates continued quarterly losses through the remainder of calendar 2022 as it invests heavily in brand-building, distribution, and further development of its nationwide sales network.
  

TAAT Founder Joe Deighan commented, “In the approximately 18 months since TAAT was first launched in the United States, we have established a solid foundation through strong execution of our priorities as well as continued attention to research and development. The advanced formulation of Beyond Tobacco known as V3 has proven exceptionally popular among adult smokers, and we have proactively taken steps to replace inventory of TAAT made with previous iterations, thus ensuring that V3 is as widely available as possible. Our acquisition of ADCO provides us more than just distribution bandwidth, which is to say that we can obtain priceless feedback and various types of insights (whether qualitative or quantitative) to continuously evaluate the performance of a given product on the market, and shape our business decisions accordingly to drive sell-through and long-term brand equity. Perhaps most exciting, we are branching out into segments that complement our core offerings, such as TAAT heat-not-burn as well as a zero-hemp formulation of Beyond Tobacco that can enable us to commercialize TAAT more broadly at a global level. We anticipate great outcomes in the rest of 2022 and throughout 2023, and are keen to continue with actively commercializing TAAT as a better alternative to legacy tobacco products.”