TAAT® Issues Heat-Not-Burn Retail Materials Foreshadowing Product Launch with E1011 Labs

Rhea-AI Summary

TAAT Global Alternatives Inc. (OTCQX: TOBAF) announced the release of its heat-not-burn product, aligning with the growing demand for smoke-free tobacco alternatives. This development follows their previous announcement of successful commercial sample batches. Major tobacco companies are increasingly investing in this segment, with notable instances such as Altria’s subsidiary acquiring PODA's intellectual property for $100.5 million. TAAT aims to build market share in this competitive landscape, offering a nicotine-free alternative to traditional smoking products.

Positive

• Launch of TAAT heat-not-burn product aligns with growing demand for smoke-free alternatives.
• Successful completion of first commercial sample batches indicates progress in product development.
• Increased interest from major tobacco firms highlights market potential.

Negative

• None.

The Company recently announced a TAAT® branded smokeless “heat-not-burn” offering with no tobacco or nicotine to complement its flagship combustible product. The heat-not-burn segment of the USD $812 billion global tobacco industry is becoming more prominent as a Canadian firm with a nicotine-free heat-not-burn product announced that its intellectual property was being sold to a subsidiary of Altria Group, Inc¹.

LAS VEGAS and VANCOUVER, British Columbia, May 17, 2022 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that in anticipation of the launch of its heat-not-burn offering, the Company has released the first edition of its retail point-of-sale materials for this new product category. In a press release dated April 27, 2022, TAAT® announced that the development of its heat-not-burn offering was advancing as the Company received the first TAAT® commercial samples from its manufacturing and development partner E1011 Labs, with whom the Company will be exhibiting at the InterTabac trade show in Dortmund, Germany (September 15-17, 2022).

Major tobacco firms worldwide appear to have expressed considerable interest in smoke-free alternatives to tobacco cigarettes, which can be exemplified by Philip Morris International’s cumulative investment of USD $8.1 billion into the category since 2008². Additionally, the Canadian producer of a nicotine-free heat-not-burn product known as PODA announced in a press release issued May 13, 2022 that its intellectual property was being sold to a subsidiary of Altria Group, Inc. for USD $100.5 million (please refer to Poda Holdings, Inc.’s May 13, 2022 press release for full details). Based on this apparent sustained interest in heat-not-burn from the tobacco industry, TAAT® recognizes the importance of gaining market share as it continues to build its global brand as a leader in better alternatives to tobacco products for adult smokers globally.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f73ad2b7-fc03-4717-b204-6def09c5fdc0

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® Co-Founder Joe Deighan commented, “Building upon the success of TAAT® to date, we are confident that rolling out our heat-not-burn offering can be done fairly rapidly between our existing sales and distribution infrastructure, as well as macro-level growth of the heat-not-burn category globally. Major tobacco firms have invested heavily into developing and commercializing heat-not-burn, though the vast majority of products in this segment still contain nicotine. We have always been all about giving adult smokers the choice to go without nicotine while still enjoying the experiences they love, and as such we are thrilled to continue moving forward with launching TAAT® heat-not-burn.”

Sources

1 - https://www.prnewswire.com/news-releases/poda-announces-multiparty-sale-of-intellectual-property-assets-for-us100-5-million-301546961.html

2 - https://www.pmi.com/our-transformation/pmi-aims-to-become-a-majority-smoke-free-business-by-2025

On behalf of the Board of Directors of the Company,

TAAT® GLOBAL ALTERNATIVES INC.

“Joe Deighan”

Joe Deighan, COO 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: Successful launch and performance of TAAT® heat-not-burn in the United States, any aspects of the intellectual property sale announced by Poda Holdings, Inc. in its May 13, 2022 press release that are not yet final as of the publication of this press release. 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 TAAT Global Alternatives' new product offering?

TAAT Global Alternatives has launched a heat-not-burn product that is both tobacco-free and nicotine-free.

What market segment is TAAT entering with its new product?

TAAT is entering the heat-not-burn segment of the $812 billion global tobacco industry.

How much did Altria's subsidiary pay for PODA's intellectual property?

Altria's subsidiary acquired PODA's intellectual property for $100.5 million.

When did TAAT announce the progress of its product development?

TAAT announced the progress of its product development in a press release dated April 27, 2022.

What is the significance of TAAT's heat-not-burn product?

TAAT's heat-not-burn product is significant as it offers adult smokers a choice to enjoy smoking experiences without nicotine.