Development of TAAT® Heat-Not-Burn Offering Advances with Completion of First Commercial Sample Batch

Rhea-AI Summary

TAAT® Global Alternatives Inc. (CSE: TAAT) (OTCQX: TOBAF) announced the receipt of its first commercial samples for the TAAT® heat-not-burn product, aimed for launch in the U.S. by late 2022. This product will complement its current tobacco-free offering, which is available in over 2,500 U.S. stores. Minor adjustments are being made to enhance flavor compatibility. The heat-not-burn devices will also be showcased at the InterTabac trade show in Germany in September 2022, highlighting the company's strategy to expand its market share in the tobacco industry.

Positive

• Introduction of TAAT® heat-not-burn product enhances product line.
• Existing product available in over 2,500 U.S. stores indicates strong market presence.
• Participation in InterTabac trade show can boost visibility and market interest.

Negative

• Dependence on the successful launch of the new product for future growth.
• Potential market competition from established tobacco brands.

LAS VEGAS and VANCOUVER, British Columbia, April 27, 2022 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that it has received the first batch of commercial samples for the TAAT® heat-not-burn offering to be launched in the United States by the end of 2022. In a press release dated February 18, 2022, the Company announced it had commenced the development of a TAAT® heat-not-burn device and heatable sticks to complement its flagship combustible product (a tobacco-free and nicotine-free alternative to tobacco cigarettes), which is currently sold in over 2,500 U.S. stores. Following an initial assessment of the commercial samples of the heatable TAAT® sticks, the Company is making minor adjustments to the base material used for this product category to optimally align with the latest flavour profile of TAAT® combustible products.

The TAAT® heat-not-burn offering will consist of a reusable device (pictured below) that is reverse-compatible with heated tobacco sticks offered by the Company’s competitors, as well as TAAT® heatable sticks in Original and Menthol flavours. The hardware and heatable sticks will be marketed and sold under the TAAT® brand name in the United States starting in either Q3 or Q4 2022. By providing an additional nicotine-free and tobacco-free alternative to popular tobacco products, the Company believes it can further expand its existing market share in the global tobacco industry.

Based on the popularity of heat-not-burn tobacco products in international markets, TAAT® has arranged to showcase its heat-not-burn offering as an exhibitor at the InterTabac trade show in Dortmund, Germany (September 15-17, 2022). During the 2019 InterTabac event, approximately 520 exhibitors from approximately 47 countries greeted an audience of over 13,000 attendees; approximately 42% of whom were attending from abroad¹.

For more information about InterTabac, please visit the following web page: https://www.intertabac.de/en/portal/

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c24f92f4-07af-46a1-b512-9bbd773b20eb

Readers using news aggregation services may be unable to view the media above. Please access SEDAR or the Investor Relations section of the Company’s website for a version of this press release containing all published media.

TAAT® Chief Executive Officer Setti Coscarella commented, “Tobacco companies have invested heavily into the development of heat-not-burn solutions for the simple reason that many adult smokers worldwide are on the lookout for something different. Although combustible products such as cigarettes remain dominant, heat-not-burn seems to have a relatively high user retention rate compared to other alternatives on the market. Based on this, we are building upon our existing footprint in the tobacco industry by creating a nicotine-free and tobacco-free offering in the heat-not-burn segment, which I believe can enhance our ability to capture market share globally. We look forward to finalizing the exact product formulation as well as its commercialization plan as we prepare to launch TAAT® heat-not-burn in 2022.”

Sources

1 - https://www.intertabac.de/en/start/

On behalf of the Board of Directors of the Company,

TAAT® GLOBAL ALTERNATIVES INC.

“Setti Coscarella”

Setti Coscarella, CEO and Director

For further information, please contact:

TAAT® Investor Relations
1-833-TAAT-USA (1-833-822-8872)
investor@taatglobal.com

THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.

About TAAT® Global Alternatives Inc.

The Company has developed TAAT®, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in "Original", "Smooth", and "Menthol" varieties. TAAT®'s base material is Beyond Tobacco™, a proprietary blend which undergoes a patent-pending refinement technique causing its scent and taste to resemble tobacco. Under executive leadership with "Big Tobacco" pedigree, TAAT® was launched first in the United States in Q4 2020 as the Company seeks to position itself in the $812 billion¹ global tobacco industry.

For more information, please visit http://taatglobal.com.

References

¹ Statista: Consumer Markets - Tobacco Products

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the anticipated performance of TAAT® in the tobacco industry, in addition to the following: Completion of further research and development work on the TAAT® heat-not-burn offering, launch of TAAT® heat-not-burn in the United States by the end of 2022, presence and potential performance of TAAT® as an exhibitor showcasing its planned heat-not-burn offering at InterTabac trade show in Germany in September 2022. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.

This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by TAAT® Global Alternatives Inc. can be found under the Company's profile on http://sedar.com.

 

FAQ

What is the TAAT® heat-not-burn product?

The TAAT® heat-not-burn product is a nicotine-free and tobacco-free alternative designed to complement TAAT's existing product line.

When will TAAT® launch its heat-not-burn offering in the U.S.?

TAAT® plans to launch its heat-not-burn offering in the United States by the end of 2022.

What flavors will the TAAT® heatable sticks be available in?

The TAAT® heatable sticks will be available in Original and Menthol flavors.

Where will TAAT® showcase its heat-not-burn product?

TAAT® will showcase its heat-not-burn product at the InterTabac trade show in Germany from September 15-17, 2022.

What significant milestone did TAAT® achieve with its heat-not-burn product?

TAAT® received its first batch of commercial samples for the heat-not-burn product, indicating progress towards its launch.