TAAT® Global Alternatives Inc. filed an expedited patent application in the United States for a refinement process of the Beyond Tobacco™ base material for TAAT® in which a broader scope of reconstituted materials containing zero hemp can be utilized to produce a nicotine-free and tobacco-free smoking experience substantially resembling that of a traditional tobacco cigarette, without any residual cannabinoids (e.g., mullein, hops, lavender, chamomile, ginseng, sage, and peppermint). While cannabis is currently permitted in several global markets, it remains illegal in most others including the majority of Asian nations1. As TAAT® sets out to capture an even greater market share in the $812 billion global tobacco industry, the Company has recognized the importance of making its nicotine-free and tobacco-free product saleable in a broader range of nations around the world by developing a Beyond Tobacco™ formulation using reconstituted biomass with zero hemp.

Although the Company has had dialogues with tobacco distributors in regions with high smoking incidence rates where TAAT® is expected to enjoy significant popularity as a nicotine-free alternative to cigarettes, it cannot be sold in several key markets due to the presence of cannabidiol and negligible tetrahydrocannabinol content in the current Beyond Tobacco™ formulation. To overcome this obstacle, the Company has experimented with numerous non-hemp plant materials with which the Beyond Tobacco™ base material can be manufactured, and TAAT® has identified specific biomass types that can be consistently sourced at a commercial scale for potential distribution in new global markets. The Company has also identified numerous benefits that are specific to these materials, which TAAT® believes could enhance the value proposition of its zero-hemp formulations.