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REPEAT – TAAT ™ has agreed to acquire an Ohio-based distributor to strengthen its position in the US tobacco industry, Canadian Business Journal

Las Vegas and Vancouver, British Columbia, February 28, 2022 (GLOBE NEWSWIRE) — TAATGLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (“Company” or “TAAT”“) HLND Holdings, Inc., the parent company of Ohio-based convenience and tobacco wholesalers. We are pleased to announce that we have signed an agreement to acquire (“HLND”) on Friday, February 25, 2022. HLND currently maintains a network of over 5,000 convenience stores through direct and indirect relationships with independent retailers and a network of regional sub-distributors. From 2019 to 2021, HLND achieved at least 10% growth in net revenue each year, with net revenue for calendar 2021 of CAD $ 87,181,400.32 (approximate conversion from US dollars as of February 23, 2022). We continue to make profits. We expect the acquisition of HLND to strengthen our existing revenue streams and asset portfolio as TAAT ™ continues to expand in the United States and internationally.

With the agreement to acquire HLND, we are embarking on a plan to transform certain aspects of our supply chain into a fully owned internal business unit. This is in line with the practice of current leaders in the global tobacco industry. With HLND’s experienced executive team and sales, logistics, and product development personnel, we can leverage these valuable skill sets as part of the larger commercialization of TAAT ™ products.

The photos that accompany this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/f5840231-aae7-491d-b6c8-d2864802541b

We have signed an agreement to acquire HLND. This will allow TAAT ™ to carry out its own wholesale in the Great Lakes region of the United States. HLND operates a well-established convenience distribution network in categories that include tobacco, snacks, candies and a variety of other convenience products.

Readers using news aggregation services may not be able to view the above media. SEDAR or Investor public relations See the section on our website for a version of this press release, including all published media.

HLND has actively expanded its footprint in the Great Lakes region of the United States. This will enhance our overall presence with our first owned facility and distribution network in the northeastern United States. TAAT ™ and major brands of tobacco (for example, Marlboro, Newport, Camel), HLND also offers a selection of consumer goods (“CPG”) for useful segments such as candies, snacks, beverages and paper products. In addition, HLND already has a variety of alternatives to cigarettes, such as e-cigarettes and vapor-breathing cartridges. February 18, 2022 Press release. Since 2019, HLND’s net revenue has grown by “double digits” (That is,Growth of more than 10% year-on-year (“YoY”), as shown in the table below.

Year HLND net income
2018 $ 54,134,739.20
2019 $ 60,181,829.12 (+ 11.17% year-on-year)
2020 $ 78,629,344.00 (+ 30.65% year-on-year)
2021 $ 87,181,400.32 (+ 10.87% year-on-year)
All figures in this table are expressed in Canadian dollars (CAD) as an approximate conversion from US dollars (USD) as of February 23, 2022.

Setti Coscarella, Chief Executive Officer of TAAT ™, commented: TAAT ™ is very popular in the Midwest and we believe that owning a regional fulfillment center will enable more efficient and profitable product distribution by continuing to increase market share. I am. In addition, direct access to Ohio stores via HLND allows you to test new products and initiatives and gain an overall understanding of the product’s market path from a distributor’s perspective. Since the introduction of TAAT ™, HLND has proven to be a highly reliable, insightful and profitable business partner. That’s why we’re excited to make them part of the TAAT ™ family. We expect it to be very helpful in expanding distributions, developing new products, and developing strategies for commercializing TAAT ™ on a larger scale. “

Barry Adelman, Director of HLND, said: There have been many tobacco and tobacco alternatives on the market over the last few decades, but the fact that flammable products are nicotine-free and tobacco-free is quite unique, and that alone is great for getting the attention of retail accounts. I’m working. , When the consumer is finally forced to switch, the order will be repeated. We have always worked with TAAT ™ and have identified a myriad of opportunities for TAAT ™ to create unparalleled value as a parent company.Combustible material original, SmoothWhen menthol The offering is just the beginning. Between the recently announced heated tobacco products and the ability to develop and test new variations, our facilities, teams, and networks can achieve many great things for TAAT ™.

The purchase price to obtain HLND is equivalent to CAD $ 6,604,000 or approximately USD $ 5,200,000 (“purchase price”) and CAD $ 2,286,000 or HLND credit line from CAD $ 8,890,000 or approximately USD $ 7,000,000 (“valuation”). Equivalent to US $ 1,800,000 unpaid. The final purchase price at closing shall be adjusted according to the valuation minus the debt on the closing date. The purchase price consists of a maximum of CAD $ 1,254,760 or 19% of the purchase price in cash (“cash”) and 81% of the remaining CAD $ 5,349,240 or TAAT ™ common stock (“compensation stock”). increase.

All consideration shares will be issued at the time of closing and will be subject to the lockup schedule, and one-third (1/3) of the consideration shares will be released from lockup on the 4th.th8th And 12th It’s been a month since the store closed.

The transaction planned in the agreement between us and HLND is expected to be completed around March 15, 2022.

In connection with the completion of this transaction, TAAT ™ will pay the independent parties a finder fee of 5% of its value (paid as 50% in cash and 50% in stock).

On behalf of our board of directors

TAATGLOBAL ALTERNATIVE SINC.

“Setticos Carrera”

Setti Coscarella, CEO and Director

For more information, please contact:

TAAT ™ Investor Public Relations
1-833-TAAT-USA (1-833-822-8872)
Investor @ taatglobal.com

The Canadian Stock Exchange (“CSE”) has not considered the accuracy or validity of this release and is not responsible for it. Also, there are no CSE regulatory service providers.

About TAATGlobal Alternatives Inc.

We have developed a tobacco- and nicotine-free TAAT ™ to replace the traditional cigarettes offered in the “original,” “smooth,” and “menthol” varieties. The base material for TAAT ™ is Beyond Tobacco ™. This is a unique blend that, through patent-pending refining technology, resembles tobacco in its aroma and taste. Under the leadership of “Big Tobacco” pedigree, TAAT ™ was first launched in the United States in the fourth quarter of 2020.1 The world tobacco industry.

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

References

1British American Tobacco – Global Market

Description of future prospects

This news release contains “forward-looking information” in the sense of applicable Canadian securities law. In many cases, but not always, information or information about the future outlook is “planning,” “expecting,” “not expecting,” “expected,” “estimating,” “intended,” or “predicting.” “Do”, “Unpredict”, “Believe”, or variations of such words or phrases, or certain actions, events, or outcomes are “possible”, “possible”, “possible” Taken, occurred, or achieved, stating “yes”, “possible”, “possible”. Information on the future outlook for this news release includes, in addition to the following, a statement of TAAT ™’s expected performance in the tobacco industry. Completion of our HLND acquisition plan under the terms and conditions of February 25, 2022. Management’s ability to integrate HLND’s business into its current business. And the ability to carry out plans to expand in the United States and internationally. The forward-looking information reflects the current expectations of management based on the currently available information, with many risks that may result in significantly different results from those described in the forward-looking information. Affected by uncertainty. We believe that the assumptions and factors used to create information about the future outlook are reasonable, but we should not place undue reliance on such information and such events have been disclosed. There is no guarantee that it will not occur within the time frame or at all. Factors that may cause actual results or events to differ materially from current expectations include: (Ii) Growth and size changes in the tobacco market. (Iii) Other factors beyond our control. We operate in a rapidly evolving environment. New risk factors occur from time to time and it is not possible for our management to predict all risk factors, and we have the impact of all factors on our business or any combination of factors or factors. It is also not possible to assess how much it affects. Actual results may differ from those contained in the forward-looking information. The forward-looking information contained in this news release was produced as of the date of this news release, and we will update or revise the forward-looking information as a result of new information, future events, etc. Explicitly deny an intention or obligation. , Except as required by applicable law.

The statement in this news release has not been evaluated by Health Canada or the US Food and Drug Administration. Due to individual differences, the benefits of taking our products vary from person to person. We cannot make any claims or warranties about the impact of our products on the health and well-being of individuals. Our products are not intended to diagnose, treat, cure or prevent any disease.

This news release typically has the trademark name (or brand name) of the third party entity with reference to (i) the company’s relationship with the third party entity mentioned in this release and / or (ii). Each product) may be included. ) In this release, client / vendor / service provider stakeholders whose relationships with the company are referenced. All rights to such trademarks are reserved by their respective owners or licensees.

Statement on a third-party investor public relations company

Disclosures regarding investor public relations firms owned by TAAT ™ Global Alternatives Inc. are under our profile. http://sedar.com..


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REPEAT – TAAT ™ has agreed to acquire an Ohio-based distributor to strengthen its position in the US tobacco industry, Canadian Business Journal

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