TAAT® Agreement to Acquire Ohio-Based Tobacco Distributor Becomes Definitive
LAS VEGAS and VANCOUVER, APRIL 21 2022 - TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that its agreement to acquire HLND Holdings, Inc. (“HLND”), which is to become the Company’s in-house distribution arm for the north-central region of the United States starting this year, is moving forward after the agreement has become definitive. In a press release dated February 25, 2022, the Company announced its initial agreement to acquire HLND for a purchase price of CAD $6,604,000 in cash and equity (full details of purchase terms are provided in the February 25, 2022 press release). The Company has made a payment of CAD $400,000 towards the CAD $1,254,760 cash portion of the purchase price. Closing of this transaction is expected to occur within ten business days, during which time the Company and HLND are implementing an agreed-upon tax structure. Through this acquisition of HLND, TAAT® will obtain access to a network of more than 5,000 convenience stores in and around Ohio through a combination of direct and indirect relationships.
As TAAT® becomes a national-scale brand in the tobacco alternatives industry, the Company is seeking to align its practices with certain industry leaders who have converted the distribution components of their respective supply chains into in-house business units to realize benefits that can include cost efficiency and improved visibility into the movement of product to the end consumer. In addition to TAAT® and major brands of tobacco cigarettes, HLND also carries a full range of convenience store products such as candy, snacks, beverages, and paper products.
In the video clip above, various footage from HLND’s facility in Canton, Ohio is shown. The Company is acquiring HLND with an objective of optimizing the TAAT® supply chain to pursue benefits such as enhanced oversight of the movement of TAAT® at the wholesale level in the north-central region of the United States, as well as the opportunity to strengthen its operating margins by handling certain aspects of TAAT® distribution in-house.
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TAAT® Chief Executive Officer Setti Coscarella commented, “Our journey towards becoming a bigger player in the tobacco alternatives industry is rapidly accelerating, and we are thrilled to be moving forward with this acquisition deal of HLND which can provide us many advantages with respect to our operations in the United States. With experienced industry leadership on our side, we benefit from unparalleled insights when it comes to building a competitive edge in this dynamic and rapidly evolving space. We are excited to be taking the next steps as we seek to scale our business even further in 2022.”
On behalf of the Board of Directors of the Company,
TAAT® GLOBAL ALTERNATIVES INC.
“Setti Coscarella”
Setti Coscarella, CEO and Director
For further information, please contact:
TAAT® Investor Relations
1-833-TAAT-USA (1-833-822-8872)
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
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