TOBAF - TAAT Global Alternatives Inc
OTC Market: OTCQX International
TAAT Global Alternatives Inc. (OTC: TOBAF, CSX: TAAT), a Canada-based company, produces, manufactures, and distributes alternative products in tobacco, cannabis, kratom, and other consumer packaged goods (CPG) segments. The firm operates through the non-tobacco-based smokable products and distribution division segments. It focuses on the development of better alternatives to traditional cigarettes for smokers. The company produces TAAT, a tobacco and nicotine-free product advanced in original, smooth, and menthol versions contrary to traditional varieties. TAAT engineers TAATs from ‘Beyond Tobacco’, a blend with zero presence of both nicotine and tobacco. Beyond Tobacco provides a smell and taste that mimic tobacco. The firm’s Beyond Nicotine cigarette is an amalgamation of proportionate amounts of hemp and food-grade ingredients that produce a similar taste to the flavour of tobacco cigarettes. The TAAT cigarette has Cannabidiol (CBD) and Tetrahydrocannabinol (THC). The company distributes its products via retail stores in Ohio and e-commerce. TAAT Global was incorporated under the Business Act on June 5, 2006, in British Colombia. The firm was initially known as TAAT Lifestyle & Wellness Ltd before changing its name to TAAT Global Alternatives Inc. in April 2021. The company is headquartered in Toronto, Canada. Its common share is listed on the CSE under TAAT, Frankfurt under 2TP2, and OTCQB under the TOBAF symbol.
The company aims to provide cigarette lovers with a significant choice to abolish nicotine while enjoying the experience they like. The company thus uses Beyond Tobacco blend to produce TAATs, which are tailored to offer smokers their everyday smoking experience composed of tobacco flavour, scent, and ritual, but free of nicotine and tobacco. The company has a patent-pending refinement technology that incorporates a 14-step proprietary process with a blend of all-natural ingredients to give a unique product that feels, smells, and tastes like regular tobacco. TAAT Global's portfolio comprises Original, Smooth, and Mental flavour variants. The company uses the TAAT brand for marketing its products and Beyond Tobacco as the base material. Beyond Tobacco (BT) is entirely derived from plant matter and contains neither tobacco nor nicotine. It undergoes significantly more intensive processes than fine-cut tobacco. The company has applied for and awaits the U.S. permitting patent on its proprietary process, which would protect the firm's innovation and enable TAAT to employ the technology on other forms of products.
Strategic Acquisitions and Partnerships
TAAT Global has pulled several strategic acquisitions over the past quarters to facilitate the marketing and distribution of its portfolio. On April 20, 2022, the company entered an agreement to acquire 100% of HLND Holdings, Inc., parent to ADCO Distributors, Inc, a convenient tobacco wholesaler rooted in Ohio. ADCO is an independent distributor with a network of more than 5 000 convenience stores via a long-term relationship with independent and corporate retailers and a chain of regional distributors. TAAT leverages ADCO's established infrastructure to aid in marketing its new products and boost the company's revenues as it expands in the U.S. and internationally.
As of September 21, 2022, the company had made vital partnerships in the online, in-store, and out-of-home aspects to help scale its business and increase value for its shareholders. It became an official supplier to a large wholesale distributor in the U.S., with more than 20,000 retailers across 22 states in November 2021. TAAT signed a representation agreement with B&B Beyond, LLC, in September 2022 to present TAAT products to regional convenience stores, wholesale buying corporations, and industry associates for further commercialization.
The company’s marketing department works hand-in-hand with radio advertising platforms that offer consistent assurance of reaching the targeted audience above the legal smoking age of 21 years. It is also building a one-on-one engagement communication platform using the existing smokers' database to ease communication and marketing to qualified smokers.
Latest Corporate and Industry Updates
TAAT sealed a partnership with the Greater Austin Merchants Cooperative Association (GAMA), effective November 2022, that would see TAAT’s products carried by GAMA. GAMA serves roughly 600 member stores across Texas. The move enables TAAT to penetrate Texas through hundreds of independent retail stores.
TAAT Global reported its Q3 fiscal results for the period ended July 31, 2022, on September 21, 2022. Highlights of the presentation include:
- Recorded $17,473,223 in revenue, with a gross profit of $567,404
- $23,383,865 growth of total assets, a 48.77% increase from the previous quarter, comprising $5,698,895 in Accounts Receivable and $5,119,919 in Inventory
- The company also generated a gross profit of $1,237,636 from the exercise of stop options, issuing 1,190,547 common shares across a nine-month spread.
Michael Saxon, TAAT Global’s CEO, expressed his enthusiasm and confidence in the strategies employed by the company and promised to continue improving the firm’s performance and footprint expansion.
TAAT announced the displacement of an entire ship container, its most significant order as of that date, to the U.K. The firm referenced the shipment as the foundation for expanding the distribution of its unique products outside of Greater London to the southeastern regions of the U.K.
MICHAEL SAXON, Chief Executive Officer
- He has over 20 years of experience as a senior manager in the international tobacco industry.
- He is a consultant to blue-chip institutional investors, venture capital, and private equity firms.
Joel Dumaresq, Chief Financial Officer
- Has more than 30 years in the finance and investment banking fields
- Also has substantial management experience in the natural resources sector
- Formerly served as the CEO of TAAT
JOE DEIGHAN, Founder – Research & Development
- In charge of R&D and production for the company
- Has massive Production and distribution experience within the United States and internationally
- Company Details – CNBC News. Accessed on 12/30/2022.
- Company Profile – Seeking Alpha.
- About TAAT Global Alternatives – TAAT Global website.
- Our Products and Proprietary Process – Management’s Discussion and Analysis for the period ended July 31, 2022, and 2021. Accessed on 12/30/2022.
- TAAT Global Alternatives Inc. Management’s Discussion and Analysis for the period ended July 31, 2022, and 2021, pages 3 & 4. Accessed on 12/30/2022.
- TAAT® Products to Expand in Austin, TX with GAMA Partnership – Yahoo Finance.
- TAAT Global Alternatives reports Q3 results – Seeking Alpha.
- REPEAT – TAAT® Dispatches Largest U.K. Shipment to Date for Expanded Distribution – Yahoo Finance.
- Corporate Governance – Executive Officers – TAAT website. Retrieved on 12/30/2022.
As of 1/24/2023 there were 108,701,655 shares of TOBAF stock outstanding.
As of 12/30/2022 short interest was 610,998 shares, which represents 3 days to cover.
Symbol change from MOLOF to TOBAF on 7/22/2020.
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