LAS VEGAS and VANCOUVER, British Columbia, Sept. 11, 2020 (GLOBE NEWSWIRE) — TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTC: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “Taat”) is pleased to provide a corporate update from its Chief Executive Officer following the Company’s closure of a $4,272,994 non-brokered private placement as announced in a press release issued earlier on September 11, 2020. To provide Taat shareholders greater visibility into the Company’s current affairs, Mr. Coscarella has assembled an overview of Taat’s most recent achievements with corresponding commentary on how these achievements, both individually and collectively, relate to near-term business objectives.
Ex-Philip Morris Commercialization Executive Tim Corkum Appointed Chief Revenue OfficerAugust 21, 2020 Press Release: Click or Tap HereSetti Coscarella: “Many companies attempt to introduce novel or clever alternatives to tobacco cigarettes. No matter how good a given product may be, there is one factor that stacks the odds in favour of the ‘Big Tobacco’ firms allowing them to maintain market share with their legacy products, and that is distribution. When you consider that there are approximately 375,000 tobacco retailers in the United States1 with different tobacco regulations at the state, or even sometimes county and municipal levels, capturing a portion of this market from very established players at a national level is an unfathomably complicated undertaking that requires an extremely sophisticated approach. Getting into national retail chains doesn’t just require getting them to take your product seriously, it also requires a professionally-prepared commercialization plan to ensure you can consistently turn a profit from selling the product in their stores. That requires a wholesale pricing matrix, negotiation of payment terms, incentives for performance, and many other safeguards to protect your profitability and brand image. These safeguards are standard for ‘Big Tobacco’ firms, which means if Taat is to compete with them, we must think and behave like them as well. In Mr. Corkum’s time at Philip Morris International as an account manager, supply chain expert, and commercialization executive, he has become thoroughly versed in driving retail market performance for sustained market share and positive bottom-line results. I am very confident that Mr. Corkum can apply his acumen in commercializing ‘Big Tobacco’ products to our endeavours in building the market footprint of Beyond Tobacco™.”Commercial-Scale Cigarette Manufacturing Procured with Favourable Pricing TermsSeptember 2, 2020 Press Release: Click or Tap HereSetti Coscarella: “With most of the cigarette market controlled by only a handful of firms, commercial-scale production of cigarettes to mass-market standards is difficult to come by, especially at a price point that can make the product affordable at retail. After extensively assessing several prospective manufacturers for Beyond Tobacco™ cigarettes, we were able to strike a very favourable deal with a large North American manufacturer that also produces tobacco cigarettes for both national and regional brands. Many products that are new to the market experience limited success when attempting to scale upward – whether that is because they do not have adequate manufacturing capacity to meet demand, or because they have not negotiated pricing terms that allow them to sell at a profit. This is a done deal, we have already paid them a six-figure deposit, and they are to begin manufacturing Beyond Tobacco™ within the next four weeks. Having squared this away well in advance of the planned launch of Beyond Tobacco™, I believe that we are protected from these ‘growing pains’, and we are correspondingly well-positioned to scale dynamically in response to demand.”Filing Completed of Taat’s First Patent Application for Cigarette Material Refinement ProcessSeptember 4, 2020 Press Release: Click or Tap HereSetti Coscarella: “No matter how well-prepared a company may be to distribute and manufacture their product, none of that matters if the product’s proprietary attributes can legally be duplicated by competitors. Many people do not know this, but in the past decade Philip Morris International2 and Japan Tobacco International3 were each listed in the 100 Top Patent Filers by the European Patent Office. Even decades earlier, ‘Big Tobacco’ firms aggressively pursued patent protection for their respective innovations in tobacco cigarettes. Because cigarettes are somewhat of a commodity product, these proprietary innovations play a significant role in building customer loyalty to cigarette brands. The ‘secret sauce’ of Beyond Tobacco™ cigarettes, which I believe could make them the product of choice for current tobacco smokers, is the refinement process of the base cigarette material which causes it to impart a taste and scent that closely resembles tobacco when ignited. While trade secrets such as these are relatively easy to protect on a small scale, we are not thinking in those terms. Our objective is for Beyond Tobacco™ cigarettes to be sold across the United States, and potentially in many other markets worldwide. Patents play a major role in allowing ‘Big Tobacco’ firms to operate at this scale without having their innovations copied, which is why I have made a point to take that precaution well in advance of launching Beyond Tobacco™, so that our innovations are suitably protected no matter how large our market presence eventually becomes.”Engaging Flinnwest for Investor Relations and Digital MediaSeptember 9, 2020 Press Release: Click or Tap HereSetti Coscarella: “Getting set up with Flinnwest can expedite the completion of several of our pre-launch objectives, in addition to alleviating our internal resources so that we can focus on our core business activities. You will notice that all of Taat’s recent milestones have one thing in common; they all contribute to ‘Playing the Part’ of a viable competitor to incumbent cigarette companies. Naturally, this alignment is mandatory from an operational perspective. However, from the perspective of making the right brand impression as a new cigarette company, ‘Looking the Part’ is just as important. At the outset, Flinnwest is to redesign our website, corporate deck, and social media channels to project a relevant and compelling image for those who are first learning about Taat and Beyond Tobacco™. Flinnwest will also administer our investor relations department using cutting-edge technology to drive conversions and diligently attend to all leads and contacts. Further, Flinnwest will take the reins of our social media accounts to publish original content on a regular basis, interact with the public, and cultivate an engaged base of followers on a variety of channels. Everybody knows how important social and digital media are for both new and established brands, which is why I have seen to it that our online presence is in expert hands to both attract and sustain interest in Taat as a company for investors, and in Beyond Tobacco™ as a product for of-age current users of tobacco cigarettes.”Near-Term Outlook and Next StepsSetti Coscarella: “With Friday September 11, 2020 being just my 28th business day as Taat’s Chief Executive Officer, my confidence in the Company has increased considerably as the growth potential for the innovative Beyond Tobacco™ cigarette became strengthened with an application for patent protection underway, and confirmed commercial-scale manufacturing of the product sorted out at a favourable cost. With the brainpower of a superstar commercialization executive for the world’s largest tobacco company behind bringing Beyond Tobacco™ to market, I believe an unforeseen level of potential can be unlocked. With Flinnwest behind our investor relations and digital media initiatives as well, I believe the Company is on a far more exciting trajectory compared to where it was before I joined. As stated in an earlier release, fewer than 100 days remain until Beyond Tobacco™ cigarettes are to be in stores and available for purchase. I look forward to sharing further developments regarding retail distribution of Beyond Tobacco™ cigarettes, our launch roadmap, and early-stage market performance where I anticipate the numbers will be able to say it all. I encourage our shareholders, investors, and supporters to follow Taat on social media for all of the latest updates, as Flinnwest will be putting out an exciting lineup of content for us over the next several weeks.”Sources1 – https://www.cdc.gov/statesystem/factsheets/licensure/Licensure.html2 – https://www.pmi.com/media-center/press-releases/press-release-details/?newsId=120913 – https://www.jti.com/sites/default/files/default/files/press-releases/documents/2020/jti-ranks-among-top-100-for-european-patent-applications.pdfOn behalf of the Board of Directors of the Company,
TAAT LIFESTYLE & WELLNESS LTD.“Setti Coscarella”Setti Coscarella, CEOFor further information, please contact:Jamie Frawley
1-833-TAAT-USA (1-833-822-8872)
investor@taatusa.comAbout Taat Lifestyle & Wellness Ltd.Having developed Beyond Tobacco™ cigarettes, which contain no tobacco or nicotine, Taat’s objective is to introduce an innovative, experience-driven alternative to tobacco cigarettes for tobacco smokers who aspire to leave nicotine behind. Beyond Tobacco™ cigarettes, which are to be offered in “Original” and “Menthol” varieties, are designed to closely emulate every aspect of smoking a traditional cigarette. From the cigarette-style packaging and stick format, to the proprietary flavouring blend which imparts the flavour and scent of tobacco, to the draw sensation, and to the amount of smoke exhaled, Beyond Tobacco™ cigarettes have been meticulously engineered to enable smokers to continue enjoying the ritual of smoking, while discontinuing nicotine intake. Taat plans to launch Beyond Tobacco™ cigarettes in Q4 2020 and is seeking to position itself in the USD $814 billion (2018)1 global tobacco industry to capitalize on the growing worldwide demand for alternatives to traditional cigarettes.For more information, please visit http://taatusa.com.References1British American Tobacco – The Global MarketForward Looking StatementsThis 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 potential launch of Beyond Tobacco™ cigarettes, in addition to the following: Potential outcomes relating to the four milestones described in the 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 FirmsDisclosures relating to investor relations firms retained by Taat Lifestyle & Wellness Ltd. can be found under the Company’s profile on http://sedar.com.Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/61f6338f-03a6-4aab-afdb-a4e0caa03897https://www.globenewswire.com/NewsRoom/AttachmentNg/4c7b5500-5852-491f-b92a-c605d6ff6dc9
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