TAAT® Completes Acquisition of Ohio-Based Tobacco Distributor

TAAT® has now officially acquired a tobacco distributor in Ohio as part of a strategic move to align its operating practices with those of leading companies in the US$812 billion global tobacco industry. TAAT® was first sold in Ohio in December 2020, and following the closing of this acquisition, the Company intends to leverage the distributor’s network and capabilities to further strengthen its presence in the Ohio and the North Central region of the United States. The details of this acquisition are described in more detail in a video posted by the Company on its YouTube channel.

LAS VEGAS and VANCOUVER, British Columbia, May 20, 2022 (GLOBE NEWSWIRE) — TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that it has successfully completed its acquisition of HLND Holdings, Inc. (“HLND”), after the agreement became final, as announced in the company’s press release. Press release of April 21, 2022. HLND is the parent entity of ADCO Distributors, Inc. (“ADCO”), a Canton, Ohio-based tobacco distributor that was established in 1960 and currently has access to a large network of retailers throughout the state through direct and indirect relations. In a press release dated October 6, 2020, the Company announced that ADCO had placed a first purchase order for TAAT® after becoming its first distributor in the United States. After ADCO placed TAAT® in its first stores in the state of Ohio, TAAT® products were officially “on the market” in direct competition with tobacco-containing cigarettes. As of May 2022, TAAT®’s retail presence in Ohio consists of hundreds of stores, which the company plans to aggressively leverage through ADCO’s distribution network and marketing resources.

To provide more details on this acquisition and its importance to the company, TAAT® released an informational video featuring its co-founder Joe Deighan as well as ADCO’s Pat Bell and Barry Adelman. This video can be viewed by clicking on the thumbnail below or by click here.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb75d75e-2b98-432d-b89a-b9cf667197d1

Readers using news aggregation services may not be able to view the above media. Please access SEDAR or Investor Relations section of the Company’s website for a version of this press release containing all published media.

TAAT® Co-Founder Joe Deighan said, “In less than two years, ADCO has generated wonderful results for us as a distributor and helped us grow from a new competitor in the tobacco to a brand sold nationally as a better alternative to tobacco cigarettes. With a network of over 2,500 US TAAT® retailers, our business model has matured to the point that we can focus on creating strategic efficiencies by taking certain aspects of our operations in-house, such as distribution. The acquisition of ADCO may also strengthen our financial position as ADCO will continue to distribute its standard convenience product lines, which collectively generated over C$87 million in net revenue in calendar year 2021. With this integrated distribution part of the company, now that the acquisition is complete, we are an even bigger player in the US$812 billion global tobacco industry, where we are just getting started.

The acquisition of ADCO was completed pursuant to a securities exchange agreement dated April 20, 2022, as amended on April 27, 2022 and May 13, 2022 between the Company as purchaser, ADCO, HLND and HLND shareholders as sellers. In consideration, the Company paid a total of CA$6,159,500 in cash and equity (the “Purchase price“), consisting of C$1,170,305 of the purchase price in cash and the balance of C$4,989,195 of the purchase price in common shares of the capital of the Company (the “Counterpart shares“). A total of 3,786,572 Consideration Shares were issued at a deemed price of $1.317602 per Consideration Share, representing the 45-day volume-weighted average closing price of the common shares of the Company The Sellers are arm’s length to the Company The Company has relied on Section 2.16 of National Instrument 45-106 (Tender Offer) Prospectus Exemption to issue the Consideration Shares, which are subject to to a contractual holding period of at least 12 months, with one-third (1/3) of the consideration shares being released every four (4) months from closing.

On behalf of the Company’s Board of Directors,

TAAT® GLOBAL ALTERNATIVES INC.

“Joe Deighan”

Joe Deighan, COO and Director

For more information, please contact:

TAAT® Investor Relations
1-833-TAAT-USA (1-833-822-8872)
[email protected]

THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR SUITABILITY OF THIS RELEASE, NOR HAS NOR THE CSE’S REGULATORY SERVICE 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. The base material of TAAT® is Beyond Tobacco™, a proprietary blend that undergoes a patent-pending refinement technique that causes its scent and taste to resemble tobacco. Under the direction of management with the “Big Tobacco” pedigree, TAAT® was first launched in the United States in the fourth quarter of 2020 as the company seeks to position itself on the 812 billion dollars1 the global tobacco industry.

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

References

1 Statista: Consumer Markets – Tobacco Products

Forward-looking statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Often, but not always, forward-looking information and information can be identified by the use of words such as “anticipates”, “expects” or “does not expect”, “is expected”, “estimates “, “intends to”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or declare that certain actions, events or results “could”, “might” , “would”, “might” or “will” occur, occur or be achieved. The forward-looking information in this press release includes statements regarding the anticipated performance of TAAT® in the tobacco industry and the continued performance of ADCO in its distribution business. Forward-looking information reflects management’s current expectations based on currently available information and is subject to a number of risks and uncertainties that could cause actual results to differ materially. t those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in the preparation of 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 within the time periods disclosed or not. at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes in the growth and size of tobacco markets; (iii) changes in the regulatory landscape applicable to the Company’s activities; and (iv) other factors beyond the Company’s control. The Company operates in a rapidly changing environment. New risk factors emerge from time to time, and it is impossible for the management of the Company to predict all risk factors, nor can the Company assess the impact of all factors on the business of the Company. Company or the extent to which any factor, or combination of factors, could cause actual results to differ from those contained in the forward-looking information. The forward-looking information included in this press release is made as of the date of this press 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 press release have not been evaluated by Health Canada or the United States 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 warranties can be made as to the effects of the Company’s products on the health and well-being of any individual. The Company’s products are not intended to diagnose, treat, cure or prevent any disease.

This press release may contain brand names of third-party entities (or their respective offerings with brand names) generally in reference to (i) the Company’s relationships with the third-party entities mentioned in this press release and/or (ii ) customers/suppliers/service providers whose relationship with the Company is/are mentioned in this press release. All rights in and to these marks are reserved by their respective owners or licensees.

Statement Regarding Third-Party Investor Relations Firms

Information about the investor relations firms retained by TAAT® Global Alternatives Inc. can be found under the company profile on http://sedar.com.

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