VANCOUVER, British Columbia, Oct. 13, 2021 (GLOBE NEWSWIRE) -- TAAT™ GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT™”) is pleased to announce that it has closed an additional private placement of CAD $10,000,000 (the “Placement”) with subscribers to the Placement consisting of a group of venture investors (the “Investors”) led by Ms. Debbie Chang, co-founder of Horizons Ventures, in her personal capacity. The Placement follows a CAD $6,750,000 investment from the Investors announced by the Company in an October 9, 2020 press release, which included an allotment of Common Share purchase warrants subsequently voluntarily exercised by the Investors for additional proceeds of CAD $10,000,000 as announced in the Company’s December 11, 2020 press release. As a result, the Investors have cumulatively invested more than CAD $26,700,000 in TAAT™ to date, and the Company has since strengthened its placement in the capital markets with an upgrade of its Common Shares to the OTCQX® Best Market in the United States (announced in a March 23, 2021 press release), and the inclusion of its Common Shares in the CSE Composite Index® as well as its CSE25™ subset of the 25 largest companies in Composite by market capitalization1. The Placement was conducted at a price of CAD $3.00 per unit (each a “Unit”), approximately 130% higher than the CAD $1.30 price per Unit of the investment made by the Investors in October 2020.
Along with its launch in the United States with more than 1,000 stores selling TAAT™ as of October 2021, the Company has also initiated expansions into Australia as well as the United Kingdom and Ireland, where an initial shipment for commercial distribution recently arrived as announced in a September 29, 2021 press release. The Company plans to use the proceeds of the Placement to further expand its manufacturing resources and to continue its strategic marketing and brand-building initiatives towards smokers aged 21+ to grow and sustain awareness of TAAT™ as a unique nicotine-free alternative to traditional cigarettes. Moreover, the Company plans to use proceeds from the Placement to begin exploring potential expansions into Asian markets as part of its sustained relationship with Ms. Debbie Chang.
TAAT™ Chief Executive Officer Setti Coscarella commented, “It is a wonderful validation for such prolific investors to be making a follow-on investment into TAAT™ as we continue our entry into the USD $814 billion global tobacco industry, with multiple international expansions already underway. The Investors’ initial investment in 2020 was instrumental to us reaching several of the milestones we have attained so far to include growing our manufacturing facilities, undertaking further research and development, placing TAAT™ in more than 1,000 stores in the United States, and organically establishing the TAAT™ brand as a well-known nicotine-free alternative to cigarettes for smokers aged 21+. Accordingly, we are confident that this additional investment can be a catalyst for our continued growth in both new and existing markets, and we are most grateful to the Investors for their ongoing commitment to TAAT™.”
Pursuant to the Placement, the Company sold an aggregate of 3,333,333 Units, each Unit was issued at a price of CAD $3.00 and comprised of one common share of the Company (each a “Common Share”) and one-fourth of one (1/4) common share purchase warrant (each whole warrant, a “Warrant”) of the Company. Each Warrant is exercisable to acquire one Common Share of the Company for a period of 24 months following the closing date at an exercise price of CAD $3.50 per Common Share. The Warrants are subject to an acceleration clause should the Common Shares have a closing price on the Canadian Securities Exchange (or such other exchange on which the Common Shares may be traded at such time) of CAD $4.50 or greater per Common Share for a period of ten (10) consecutive trading days at any time that is four months and one day from the closing date, in which event the Company may notify warrantholders that the Warrants must be exercised within a period of 30 days, or they will expire. All securities issued or issuable pursuant to the Placement are subject to a hold period of four months and one day.
In connection with the closing of this Placement, TAAT™ has paid CAD $500,000 in cash, representing 5% of the gross proceeds from the Placement, and issued an aggregate of 166,666 Common Shares in the capital of the Company, in payment of finder’s fees to an arm’s length party.
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: Potential outcomes from the strategic investment made by the Investors. 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 Firms
Disclosures relating to investor relations firms retained by TAAT™ Global Alternatives Inc. can be found under the Company’s profile on http://sedar.com.