Christina Lake Cannabis Corp. announced that it has entered into a memorandum of understanding (“MOU”) with TAAT™ Lifestyle & Wellness Ltd. dated February 24, 2021 in which CLC is to develop and distribute the TAAT™ nicotine-free and tobacco-free alternative to tobacco cigarettes for the Canadian market. The MOU grants CLC exclusive rights to develop and distribute TAAT™ in Canada for a two-year renewable term, and provides for budgets, schedules, and contributions of both parties for each stage of product development to be agreed upon by way of written agreements to set out specific stipulations for each stage.

After TAAT™ was first announced in mid-2020, considerable interest was received from legal-aged Canadian smokers who appear to be drawn to the unique properties of TAAT™ as a tobacco-free and nicotine-free product, as well as its low price point compared to tobacco cigarettes (e.g., USD 3.99 for TAAT™ in Ohio vs approx. USD 7.00 for Marlboro). The base material of TAAT™ is known as Beyond Tobacco™, a proprietary hemp formulation which undergoes a 14-step process to taste, smell, and smoke similarly to actual tobacco.

As Canadian law generally requires hemp products and derivatives to be produced, distributed, and sold through entities licensed by Health Canada, CLC's status as a Licensed Producer under the Cannabis Act could enable TAAT™ to be produced and sold in the Canadian market, where the tobacco industry is valued at CAD 19.1 billion.