LAS VEGAS and VANCOUVER, British Columbia, Feb. 18, 2022 (GLOBE NEWSWIRE) — TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT™”) is pleased to announce that it has entered into a letter of intent (“LOI”) with a U.S. subsidiary of Shanghai Shunho New Materials Technology Co. (Shenzhen: 002565) (“Shunho”) to undertake development work for a white-labelled “heat-not-burn” device as well as heatable sticks containing TAAT™’s proprietary tobacco-free and nicotine-free Beyond Tobacco™ material in all three flavours (Original, Smooth, and Menthol). Heat-not-burn tobacco products first became commercially available in the 2010s as an alternative to combustible tobacco cigarettes, addressing many of the weaknesses of e-cigarettes which deliver nicotine through vapour instead of smoke. As heat-not-burn has proven to retain users exceptionally well compared to other tobacco cigarette alternatives, TAAT™ has identified the opportunity to build upon its existing international market share in the tobacco industry by planning an expansion into the heat-not-burn category with a tobacco-free and nicotine-free offering that would be among the first of its kind in the United States.
In addition to procuring heatable TAAT™ sticks made using the Company’s Beyond Tobacco™ material, Shunho’s U.S. subsidiary is to supply a proprietary heat-not-burn device on a “white-label” basis, which is to be commercialized in the United States under the TAAT™ brand name. Uniquely, this device will offer reverse compatibility with heated tobacco sticks offered by the Company’s competitors, as well as the TAAT™ Original, Smooth, and Menthol heatable sticks.
Headquartered in Shanghai, Shunho is a renowned tobacco ancillary service company that has worked closely with international tobacco companies. Under Shunho, there is a portfolio of firms that are currently developing next-generation electronic cigarette and vapourizing products. TAAT™ will be the first foreign third-party with whom a Shunho subsidiary has partnered for white-label production of heat-not-burn products. Additionally, distribution services will be provided for the TAAT™ heat-not-burn offerings through various in-house and third-party e-commerce channels in the United States.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bd2d85f2-0f3d-4ff2-8dbf-218da7b99597
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TAAT™ Chief Executive Officer Setti Coscarella commented, “Our mission is to provide consumers better alternatives to tobacco cigarettes, giving them the option to leave nicotine behind while keeping the experiences they love. After just over one year of selling TAAT™ with launches all over the United States, we have realized exceptional success in offering consumers the novel concept of a combustible product that largely resembles the experience of smoking a tobacco cigarette, but with no tobacco or nicotine. Although this credibly positions us to capture market share in the largest segment of the tobacco category, it is important to remember that there are several niche tobacco segments besides cigarettes. The reason we chose to pursue the heat-not-burn segment is because it is the most ‘sticky’ option out of all commercially available alternatives to cigarettes. The tobacco industry has invested heavily in cultivating a user base for heat-not-burn to the point that it may even replace major brands of tobacco cigarettes altogether in certain markets. We are excited to be leveraging innovative technologies to create a unique nicotine-free and tobacco-free experience using heat-not-burn for consumers who currently use and prefer this method. Because the TAAT™ heat-not-burn device will work with TAAT™ sticks as well as certain competitors’ heatable tobacco sticks, we believe this strategy authentically embodies our values as a company by providing consumers the choice and flexibility they deserve to have.”
On behalf of the Board of Directors of the Company,
TAAT™ GLOBAL ALTERNATIVES INC.
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT™ Investor Relations
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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 $814 billion1 global tobacco industry.
For more information, please visit http://taatglobal.com.
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 development of TAAT™ heat-not-burn sticks for commercial-scale manufacture, confirmed compatibility of heat-not-burn sticks (by TAAT™ and/or competitors) with the licensed heat-not-burn device, launch of the TAAT™ heat-not-burn offering in the United States, Shunho’s U.S. subsidiary providing long-term manufacturing and distribution services for the TAAT™ heat-not-burn offering as described in the 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.
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