Market Newsdesk

FREMONT, Calif., Nov. 13, 2020 (GLOBE NEWSWIRE) — Zosano Pharma Corporation (NASDAQ:ZSAN), a clinical-stage biopharmaceutical company, today announced financial results for the third quarter ended September 30, 2020, as well as recent business updates.

“Our priority focus is obtaining resolution regarding the NDA for Qtrypta™,” said Steven Lo, President and CEO of Zosano. “We plan on having a Type A meeting with the FDA as soon as possible and look forward to clarification on next steps and the possibility of resubmitting our NDA. We continue to believe in the promise that Qtrypta holds as an attractive alternative for patients suffering from migraine. Separately during the quarter, we executed a feasibility study agreement with Mitsubishi Tanabe Pharma Corporation that reinforces the potential of our transdermal microneedle system technology.”

Recent Business Updates

• Entered into a feasibility study agreement with Mitsubishi Tanabe Pharma Corporation. Under the agreement, Zosano plans to evaluate the feasibility of formulating a pharmaceutical agent being developed by Mitsubishi Tanabe Pharma Corporation for administration with its proprietary transdermal microneedle system technology
• Partnered with EVERSANA, a leading provider of commercial services to the life science industry, to commercialize and distribute Qtrypta™, if approved, in the United States
• Received a complete response letter (CRL) from the U.S. Food and Drug Administration (FDA) in connection with the Qtrypta™ (zolmitriptan transdermal microneedle system) 505(b)(2) New Drug Application (NDA)
• To conserve resources, decided to end enrollment of new subjects into the placebo-controlled Phase 2/3 clinical trial evaluating the potential of C213 as an acute treatment for cluster headache as of December 31, 2020; subjects enrolled prior to that time will continue to be evaluated

Financial Results for the Third Quarter Ended September 30, 2020

Zosano reported a net loss for the third quarter of 2020 of $8.7 million, or $0.11 per share on a basic and diluted basis, compared with a net loss of $9.9 million, or $0.55 per share on a basic and diluted basis, for the same quarter in 2019.

Research and development expenses for the third quarter of 2020 were $5.8 million, compared with $6.5 million for the same quarter in 2019. The decrease of $0.7 million was primarily attributable to lower clinical trial costs of $0.8 million due to the completion of Zosano’s long-term safety study in 2019, a decrease of $0.2 million in compensation costs due to reduced headcount and a $0.3 million decrease in travel and general business expenses due to COVID-19. These decreases were partially offset by an increase of $0.3 million associated with the scale up and technology transfer to Zosano’s contract manufacturers and an increase in depreciation expense of $0.3 million related to assets placed into service at its contract manufacturers.

General and administrative expenses for the third quarter of 2020 were $2.7 million, compared with $3.1 million in 2019. The decrease of $0.4 million was primarily attributable to a $0.4 million decrease in professional services costs related to strategic and pre-commercial activities and a $0.2 million decrease in compensation costs related to lower headcount. These decreases were partially offset by a $0.2 million increase in legal and professional services costs related to corporate and intellectual property matters and audit fees.

As of September 30, 2020, cash and cash equivalents were $43.6 million as compared with $6.3 million as of December 31, 2019.

About Zosano Pharma

Zosano Pharma Corporation is a clinical-stage biopharmaceutical company focused on developing products where rapid administration of approved molecules with established safety and efficacy profiles may provide substantial benefit to patients, in markets where patients remain underserved by existing therapies. The company’s transdermal microneedle system technology consists of titanium microneedles coated with drug that are designed to enable rapid systemic administration of therapeutics to patients. Zosano’s lead product candidate is Qtrypta™ (M207), which is a proprietary formulation of zolmitriptan designed to be delivered via its transdermal microneedle system technology, as an acute treatment for migraine. Learn more at www.zosanopharma.com or connect through LinkedIn at https://www.linkedin.com/company/zosano-pharma, Twitter at https://twitter.com/ZosanoPharma and Instagram at https://www.instagram.com/zosanopharma/.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the company’s plan to have a Type A meeting with the FDA and the company’s expectations with respect to the meeting with the FDA, the company’s plan to evaluate the feasibility of formulating a pharmaceutical agent being developed by Mitsubishi Tanabe Pharma Corporation for administration, with the company’s proprietary transdermal microneedle system technology and the company’s plan with respect to the placebo-controlled Phase 2/3 clinical trial evaluating the potential of C213 as an acute treatment for cluster headache. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause the company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the company’s business in general, see the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The company does not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events, changed circumstances or otherwise, except as required by law.

Zosano Contacts:

Christine Matthews
Chief Financial Officer
510-745-1200

Zosano PR:
Sylvia Wheeler or Alexandra Santos
[email protected] or [email protected]

ZOSANO PHARMA CORPORATION

CONDENSED BALANCE SHEETS

(in thousands, except par value and share amounts)

		September 30, 2020				December 31, 2019
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	43,554			$	6,316
Prepaid expenses and other current assets		615				497
Total current assets		44,169				6,813
Restricted cash		455				455
Property and equipment, net		30,621				24,636
Operating lease right-of-use assets		5,204				5,763
Other long-term assets		3				3
Total assets		$	80,452			$	37,670
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,972			$	4,356
Accrued compensation		1,982				2,015
Build-to-suit obligation, current portion		4,293				4,554
Operating lease liabilities, current portion		1,332				1,140
Paycheck Protection Program loan, current portion		201				—
Other accrued liabilities		3,394				4,172
Total current liabilities		13,174				16,237
Build-to-suit obligation, long-term portion, net of debt issuance costs and discount		5,447				6,095
Operating lease liabilities, long-term portion		5,058				5,931
Paycheck Protection Program loan, long-term portion		1,416				—
Other liabilities		113				15
Total liabilities		25,208				28,278
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding as of September 30, 2020 and December 31, 2019		—				—
Common stock, $0.0001 par value; 250,000,000 shares authorized; 102,066,218 and 23,503,214 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		10				2
Additional paid-in capital		379,326				308,211
Accumulated deficit		(324,092		)		(298,821		)
Total stockholders’ equity		55,244				9,392
Total liabilities and stockholders’ equity		$	80,452			$	37,670

ZOSANO PHARMA CORPORATION

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share amounts)

(unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Revenue		$	—			$	—			$	—			$	—
Operating expenses:
Research and development		5,824				6,486				16,270				19,742
General and administrative		2,704				3,071				8,552				8,709
Total operating expenses		8,528				9,557				24,822				28,451
Loss from operations		(8,528		)		(9,557		)		(24,822		)		(28,451		)
Other income (expense):
Interest income		2				41				17				203
Interest expense		(165		)		(281		)		(561		)		(357		)
Other income (expense), net		4				(66		)		95				(44		)
Loss before provision for income taxes		(8,687		)		(9,863		)		(25,271		)		(28,649		)
Provision for income taxes		—				—				—				—
Net loss		$	(8,687	)		$	(9,863	)		$	(25,271	)		$	(28,649	)
Unrealized gain on marketable securities, net of tax		—				—				—				5
Comprehensive loss		$	(8,687	)		$	(9,863	)		$	(25,271	)		$	(28,644	)
Net loss per common share – basic and diluted		$	(0.11	)		$	(0.55	)		$	(0.45	)		$	(1.84	)
Weighted-average shares used in computing net loss per common share – basic and diluted		77,883,158				17,832,092				56,437,417				15,579,387

FLORHAM PARK, N.J., Nov. 13, 2020 (GLOBE NEWSWIRE) — Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a late clinical-stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases, announced today that members of the management team will participate in a fireside chat at the Jefferies Virtual London Healthcare Conference on Wednesday, November 18, 2020 at 3:15 p.m. GMT (10:15 a.m. ET).

Company management will also participate in one-on-one meetings during the virtual conference which runs from November 17-19, 2020.

To access the live webcast and archived recordings for each presentation, visit the News & Events section of the Phathom website at https://investors.phathompharma.com/news-events/events-and-presentations.  Recordings will be available for 60 days following the event.

About Phathom

Phathom Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of novel treatments for gastrointestinal diseases and disorders.  Phathom has in-licensed the exclusive rights in the United States, Europe, and Canada to vonoprazan, a novel potassium competitive acid blocker (P-CAB) in late-stage development for the treatment of acid-related disorders.  For more information about Phathom, visit the Company’s website at www.phathompharma.com or follow the Company on LinkedIn at www.linkedin.com/company/phathompharma.

CONTACTS

Media Contact:

Nick Benedetto
1-877-742-8466
[email protected]

Investor Contact:

Todd Branning
1-877-742-8466
[email protected]

VANCOUVER, British Columbia, Nov. 13, 2020 (GLOBE NEWSWIRE) — MAG Silver Corp. (TSX / NYSE American:MAG) (“MAG” or the “Company”) announces the Company’s unaudited financial results for the three and nine months ended September 30, 2020. For details of the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the three and nine months ended September 30, 2020, please see the Company’s filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).

All amounts herein are reported in $000s of United States dollars (“US$”) unless otherwise specified.

HIGHLIGHTS – SEPTEMBER 30, 2020 & EVENTS SUBSEQUENT TO THE QUARTER END

• Juanicipio operator, Fresnillo, has implemented a range of safety measures and monitoring procedures, consistent with the World Health Organization’s and Mexican Government’s direction, in response to COVID-19, with the overall expected project development timetable unchanged.
  • Juanicipio plant expected to commence commissioning in mid-2021 and reach 85% of its 4,000 tonnes per day (“tpd”) nameplate capacity by year end 2021.
• Construction of the 4,000 tpd Juanicipio plant continues to advance, with the plant foundations completed and curing, and the prefabricated steel elements now ready for installation.
• Underground development at Juanicipio is now at 32 km (20 miles) with preparation of the first production stope concluded during the third quarter of 2020.
• Initial mine production commenced in early August 2020 with processing of development material on commercial terms through the nearby Fresnillo plant, and is expected to continue at a rate of approximately 16,000 tonnes per month until the Juanicipio plant is commissioned. During the quarter ended September 30, 2020, on a 100% basis:
  • 42,476 tonnes of mineralized material were processed through Fresnillo’s mill, with 394 thousand silver ounces, 610 gold ounces, 138 tonnes of lead and 174 tonnes of zinc produced and sold in the quarter.
  • Subsequent to the quarter end, a further15,400 tonnes were processed in October 2020.
• Provisional sales of $9,525 on a 100% basis less $1,530 in related costs, netting $7,995 that was credited against project capital in accordance with MAG’s pre-commercial production accounting policy.
• Estimated initial capital of $440,000 (on a 100% basis) as of January 1, 2018, will be reduced by:
  • Development expenditures incurred since then to September 30, 2020 of approximately $197,427 (the Company therefore estimates approximately $242,573 of remaining initial capital on a 100% basis as at September 30, 2020);
  • Existing cash held in Minera Juanicipio as at September 30, 2020 ($14,417); and,
  • Expected cashflow generated from material being processed through the Fresnillo plant up until the Juanicipio plant is commissioned in mid-2021 (a net of $7,995 was generated in the third quarter of 2020).
• After the temporary COVID-19 restrictions established by the Mexican Government in the previous quarter were lifted, drilling resumed in the current quarter and the full Juanicipio 2020 exploration program is expected to be completed as planned in 2020.
• On June 29, 2020, the Company established an at-the-market equity program (the “ATM Program”) and in the quarter ended September 30, 2020 the Company sold and issued 3,092,783 common shares under the ATM Program at an average price of $16.17 per share, for gross and net proceeds of $50,000 and $48,625 respectively.
• MAG held cash and cash equivalents as at September 30, 2020 of $136,045 while Minera Juanicipio had cash on hand on a 100% basis of $14,417 as at September 30, 2020.
• Subsequent to September 30, 2020, the Company advanced $40,524 to Minera Juanicipio representing its 44% share of a $92,100 cash call to fund process plant construction and further underground development on the Juanicipio property.
• Deer Trail Project in Utah was announced during the quarter, a silver-rich Carbonate Replacement Deposit (“CRD”) target, with drilling having commenced in November, 2020.

“We are very pleased with the progress at Juanicipio. The metallurgical response of the mineralization is correlating well with our expectations. We will start optimizing flotation parameters over the next two quarters, which will significantly de-risk the Juanicipio plant start-up,” said George Paspalas, President and CEO. “Whilst the early cash flow at Juanicipio is a welcome boost, we remain eager explorers at both the Juanicipio JV and Deer Trail.”

JUANICIPIO PROJECT UPDATE

Under the terms of an Engineering, Procurement, Construction and Management agreement, Fresnillo and its affiliates are overseeing the construction of the 4,000 tpd process plant and associated surface and underground infrastructure. In the previous quarter, surface construction progress at Juanicipio was limited due to temporary COVID-19 restrictions imposed by the Mexican Government in response to the virus outbreak. Construction ramped up again starting June 1, 2020 and into the quarter ended September 30, 2020, and according to Fresnillo, the overall development timetable currently remains unchanged with the Juanicipio processing plant expected to be commissioned in mid-2021.

In the nine months ended September 30, 2020, further development progress was made on construction of the flotation plant and other infrastructure. The mill foundations are completed and curing. Underground development to date at Juanicipio is now at 32 km (20 miles) with access to the upper portion of the resource now achieved. Initial development indicates that the grade and width of the vein are in line with previous drilling-derived estimates, and preparation of the first production stope was concluded during the three months ended September 30, 2020. A photo gallery of current development progress at Juanicipio is available at https://magsilver.com/projects/photo-gallery/#photo-gallery.

Initial production from the mine commenced during the third quarter ahead of schedule, with 42,476 tonnes of development material successfully processed through the Fresnillo plant in August (21,126 tonnes) and September (21,350 tonnes) of 2020. The Joint Venture produced and sold 394 thousand silver ounces, 610 gold ounces, 138 tonnes of lead and 174 tonnes of zinc in the third quarter. Provisional sales (net of treatment charges) of $9,525 less $1,530 in related mining and transportation costs, netting $7,995 on a 100% basis, was credited against Juanicipio capitalized costs in accordance with the Company’s pre-commercial production accounting policy. The provisional sales and treatment charges will be adjusted in the fourth quarter based on final assay and pricing adjustments in accordance with the offtake contracts.

By bringing forward the start-up of the mine and by processing mineralized material early, MAG and Fresnillo expect to secure several positive outcomes for the Juanicipio Project:

• generating cash-flow from production to offset some of the cash requirements of the initial project capital (provisional net $7,995 was generated on a 100% basis in the third quarter of 2020);
• de-risking the flotation process through a better understanding of the metallurgical characteristics and response of the Juanicipio mineralization;
• increased certainty around the geological block model prior to start-up of the processing plant; and,
• allowing a quicker and more certain ramp-up to the nameplate 4,000 tonnes per day plant design.

Mineralized material from the mine is expected to be processed on commercial terms at a rate of 16,000 tonnes per month at the Fresnillo plant facility (100% owned by Fresnillo) until the Juanicipio plant is commissioned in mid-2021. Subsequent to the quarter end, another 15,400 tonnes of material were processed in October 2020.

The initial capital expenditure requirements for the Juanicipio Project, as revised and announced by the joint venture shareholders on February 24, 2020 (see Press Release as of the same date) is estimated as of January 1, 2018 to be $440,000 (100% basis). This initial capital expenditure estimate does not take into account the capital expenditures incurred since January 1, 2018 which total approximately $197,427 to September 30, 2020. MAG therefore estimates the remaining initial capital expenditures on a 100% basis for the Juanicipio Project to be approximately $242,573 (MAG’s 44% share being $106,732 as at September 30, 2020) This funding balance will be reduced by both existing cash held in Minera Juanicipio as at September 30, 2020 ($14,417 on a 100% basis), and by expected cash flows generated from mineralized material sold and processed through the Fresnillo processing plant at the rate of approximately 16,000 tonnes per month.

On the exploration front, most of the Juanicipio property remains unexplored with many untested exploration targets still to be pursued by the joint venture partners. After a temporary halt in exploration activity in the prior quarter due to COVID-19 restrictions, drilling on the property resumed in the third quarter with five rigs currently on site. Drilling is presently focused on continued step-out and infill drilling of the Valdecañas Deep Zone. Holes are also being directed at the Anticipada Vein and NE-trending Venadas Vein family targeting them independently from the Valdecañas Vein. Despite the temporary COVID-19 restrictions noted above, the full Juanicipio 2020 drilling program is expected to be completed as planned in 2020.

DEER TRAIL
PROJECT

During the quarter, MAG announced its Deer Trail earn-in project in Utah, a silver-rich CRD target. With drill roads completed and drill pads fully permitted, a 6,500-metre Phase I surface drilling program commenced subsequent to the quarter end in November 2020.

THE ATM PROGRAM

On September 8, 2020, the Company completed a $50,000 at-the-market equity program (“the ATM Program”) which was established on June 29, 2020. From June 30, 2020 to September 8, 2020, the Company sold and issued 3,092,783 common shares under the ATM Program at an average price of $16.17 per share for gross proceeds of $50,000. There is no remaining availability under the ATM Program.

FINANCIAL RESULTS –
THREE AND NINE MONTHS
ENDED
SEPTEMBER 30, 2020

As at September 30, 2020, MAG had working capital of $137,814 (September 30, 2019: $94,895) including cash and cash equivalents of $136,045 (September 30, 2019: $94,599) and no long-term debt. As well, as at September 30, 2020 Minera Juanicipio had cash of $14,417 (MAG’s attributable 44% share $6,343).

The Company’s net loss for the three and nine months ended September 30, 2020 amounted to $3,607 and $17,208 respectively or $(0.04)/share and $(0.19)/share respectively (September 30, 2019: $2,005 and $3,408 or $(0.02)/share and $(0.04)/share, respectively).

The Company recorded a deferred income tax benefit of $1,229 for the three months ended September 30, 2020 and a deferred income tax expense of $4,949 for the nine months ended September 30, 2020 (September 30, 2019: $595 and $27 deferred income tax expense, respectively). The deferred expense for the nine months ended September 30, 2020 was driven primarily by the non-cash devaluation of certain tax assets denominated in Mexican Pesos, as the Mexican Peso devalued significantly against the US dollar in the first six months of the year (from 18.87 Pesos/US$ on December 31, 2019 to 22.36 on September 30, 2020).

Share-based payment expense (a non-cash item) recorded in the three and nine months ended September 30, 2020 amounted to $554 and $2,262 respectively (September 30, 2019: $507 and $2,015 respectively) and is determined based on the fair value of equity incentives granted and vesting in the period.

The Company recorded a 44% equity loss pick-up of $3,392 and $6,890 respectively in the three and nine months ended September 30, 2020 from Minera Juanicipio (September 30, 2019: $266 equity loss pick-up and $496 equity income pick-up respectively). The equity loss pick-up from Minera Juanicipio relates to the Company’s 44% share of a foreign exchange loss and a deferred income tax expense, which was partially offset by interest income earned within Minera Juanicipio.

Qualified Person:

All scientific or technical information in this press release, including assay results and Mineral Resource estimates, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Dr. Peter Megaw, Ph.D., C.P.G., a Certified Professional Geologist who is a “Qualified Person” for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects (“National Instrument 43-101” or “NI 43-101”). Dr. Megaw is not independent as he is an officer and a paid consultant of MAG Silver.

About MAG Silver Corp.

MAG Silver Corp. is a Canadian advanced stage development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district scale, silver-dominant projects in the Americas. Its principal focus and asset is the Juanicipio Project (44%) being developed in a joint venture with Fresnillo (56%). The Juanicipio Project is located in the Fresnillo Silver Trend in Mexico, the world’s premier silver mining camp. The Juanicipio Joint Venture is currently constructing and developing the surface and underground infrastructure on the property to support a 4,000 tonnes per day mining operation, with the operational expertise of Fresnillo, the project operator. As well, an exploration program is in place at Juanicipio on multiple highly prospective targets.

For further information on behalf of MAG Silver Corp. Contact Michael J. Curlook, VP Investor Relations and Communications
Phone: Toll Free:		(604) 630-1399 (866) 630-1399		Website: Email:		www.magsilver.com [email protected]

Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not
guarantees
of future performance and actual results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions
; the use of the net proceeds from the private placement is subject to change;
political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the
MAG Silver
’s
filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward-looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.

Please Note: Investors are urged to consider closely the disclosures in 
MAG’s
annual and quarterly reports and other public filings, accessible through the Internet at

www.sedar.com

and

www.sec.gov

LEI: 254900LGL904N7F3EL14

EMERYVILLE, Calif., Nov. 13, 2020 (GLOBE NEWSWIRE) — Adamas Pharmaceuticals, Inc. (Nasdaq: ADMS) today announced that the compensation committee of the company’s board of directors granted three new employees the option to purchase an aggregate of 45,000 shares of the company’s common stock, at a per share exercise price of $3.45, the closing trading price on November 6, and restricted stock units to acquire 22,500 shares of the company’s common stock. The stock options and restricted stock units vest over four years and were granted pursuant to the Adamas Pharmaceuticals, Inc. 2016 Inducement Plan, which was approved by the company’s board of directors in March 2016 under Rule 5653(c)(4) of the Nasdaq Global Market for equity grants to induce new employees to enter into employment with the company.

About Adamas Pharmaceuticals, Inc. 
At Adamas our vision is clear – to deliver innovative medicines that reduce the burden of neurological diseases on patients, caregivers and society. We are a fully integrated company focused on growing a portfolio of therapies to address a range of neurological diseases. For more information, please visit www.adamaspharma.com.

Contact:

Investors:
Peter Vozzo
Westwicke Partners
443-213-0505
[email protected]

Media:
Sarah Mathieson
Vice President, Communications & Engagement
510-450-3528
[email protected]

After beginning large-scale in-house production of Taat’s Beyond Tobacco™ base material, the Company has already reached 50% of its production capacity even before launching. Each 16-hour day of production yields approximately 600 lb / 272 kg of Beyond Tobacco™, which is sufficient to produce one full 1,440-carton pallet of Taat. Based on current volumes, the Company has procured new machinery to be installed in its Las Vegas, NV processing facility which is expected to increase production bandwidth to as much as
2,400 lb / 1,088 kg per day
. Additionally, the Company’s CEO Setti Coscarella has released an informational video statement in which Mr. Coscarella details the weaknesses of mainstream alternatives to tobacco cigarettes, and explains how Taat is being developed and commercialized to address these shortcomings.

LAS VEGAS and VANCOUVER, British Columbia, Nov. 13, 2020 (GLOBE NEWSWIRE) — TAAT LIFESTYLE & WELLNESS LTD. (CSE: TAAT) (OTCQB: TOBAF) (FRANKFURT: 2TP2) (the “Company” or “Taat”) is pleased to announce that its in-house production of the Beyond Tobacco™ base material for Taat, its flagship product to be launched in Ohio later this month, is now being produced at a rate of approximately 600 lb / 272 kg per day, a quantity that is sufficient to produce approximately one full 1,440-carton pallet of Taat. As stated in the Company’s press release dated October 16, 2020, Taat’s Las Vegas, NV processing facility can produce up to 1,200 lb / 544 kg of Beyond Tobacco™ per day. Having already reached 50% of its in-house production capacity for Beyond Tobacco™ even before launching Taat, the Company has ordered upgraded machinery to accommodate forecasted increases in demand following the debut of Taat in the United States. In addition to current interest in Taat from tobacco wholesalers and retailers in Ohio, nearly one third of unique visitors to the Company’s TryTaat landing page (http://trytaat.com) have requested Taat product samples. With Taat’s Ohio launch set to occur later this quarter, the Company’s Las Vegas, NV processing facility has been in operation for 16 hours per day every day including weekends to prepare a sufficient supply of Beyond Tobacco™ to meet anticipated demand.

The Company has developed Beyond Tobacco™ to taste, smell, and burn similarly to tobacco, despite containing no tobacco or nicotine. Beyond Tobacco™ is the base material of Taat, an alternative to traditional cigarettes offered in a cigarette-style format in Original, Smooth, and Menthol varieties. Under executive leadership with “Big Tobacco” pedigree, the Company has chosen the state of Ohio as the launch market for Taat in the United States, where an initial supply of Taat intended for sale at retail will arrive in Ohio later in Q4 2020. The Beyond Tobacco™ base material is processed in the Company’s Las Vegas, NV facility with a 14-step refinement procedure. Finished Beyond Tobacco™ is then sent to the Company’s contract manufacturer, who also makes cigarettes for national and global brands, for production and warehousing before shipment to wholesalers.

Beginning in mid-November 2020, deliveries of upgraded machinery for producing Beyond Tobacco™ will begin to arrive at the Company’s Las Vegas, NV processing facility. The new equipment, which includes conveyor belts and a vacuum sealer, is expected to increase Taat’s daily production capacity of Beyond Tobacco™ to a maximum of 2,400 lb / 1,088 kg per 16-hour day. Based on current Taat manufacturing yields, the Company anticipates this greater production bandwidth for Beyond Tobacco™ will allow for more than 2.1 million ten-pack cartons of Taat to be made on an annual basis. At this time, the Company is continuing to produce approximately 600 lb / 272 kg of Beyond Tobacco™ per day until it establishes a supply of material sufficient to produce approximately 30 pallets (43,200 cartons) of Taat.

Taat Herb Co. Founder Joe Deighan in front of the Company’s facility in Las Vegas, NV, where the Beyond Tobacco™ base material is produced.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/50fd3780-4d57-4233-b1dc-c67e5816af08

Readers using news aggregation services may be unable to view the media above. Please access the

Investor Relations

section of the Company’s website for a version of this press release containing all published media.

The Company is also pleased to release an informational video statement made by its Chief Executive Officer Setti Coscarella, in which Mr. Coscarella details the weaknesses of mainstream products positioned as alternatives to tobacco cigarettes, and explains how Taat has been developed to address such weaknesses. Based on positive feedback from investors and the general public regarding Taat’s proprietary video content, the Company intends to continue releasing informational videos from its management team and advisory board on its YouTube channel.

Taat CEO Setti Coscarella in the Company’s latest informational video statement, which can be viewed by clicking the thumbnail above or


clicking here


.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ed733b4e-968a-46b3-8fe1-eaf7e74cb200

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Taat Herb Co. Founder Joe Deighan, who directly oversees the Company’s Las Vegas, NV processing facility operations, said “It’s very exciting to be playing a firsthand role in developments such as these as we bring the Taat vision to reality on such a large scale. As intense as it may be to lead non-stop production of Beyond Tobacco™ for 16 hours per day every day, this is a major turning point in our journey to launch. We already have the market-ready product formulation, the distribution reach, and the go-to-market plan. What we need now is inventory to meet anticipated demand, and the fact that the supply we’re producing today has a clear path to being placed on retail shelves among incumbent tobacco products soundly validates that we are now far past the initial R&D phase and well into the ‘doing business’ phase.”

Taat Chief Executive Officer Setti Coscarella commented, “With the amount of interest Taat has been getting from tobacco wholesalers and individual adult smokers from around the world, as well as thousands of free sample requests in the United States on our TryTaat landing page, it is no secret at all that quantity is now the name of the game in order to meet potential demand. This comes as no surprise considering how rapidly Taat sold out during early-stage retail market testing earlier this year. Accordingly, we have taken it upon ourselves to maximize output of Beyond Tobacco™ from our Las Vegas processing facility by operating two daily shifts instead of one, and upgrading our equipment to improve our production capacity. As I mentioned in the latest informational video, Taat is very unique in that it offers exactly what other alternatives to tobacco cigarettes cannot offer. Even before we’ve launched, smokers of legal age all across the United States have recognized this, which is why we are seeking to maximize our production capacity now. I look forward to seeing the performance of our upgraded equipment as we ramp up production of Beyond Tobacco™ to prepare for our launch in Ohio.”

On behalf of the Board of Directors of the Company,

TAAT LIFESTYLE & WELLNESS LTD.

“Setti Coscarella”

Setti Coscarella, CEO

For further information, please contact:

Taat Investor Relations
1-833-TAAT-USA (1-833-822-8872)
[email protected]

THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

About Taat Lifestyle & Wellness Ltd.

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 is launching 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://taatusa.com.

References

¹

British American Tobacco – The Global Market

Forward Looking Statements

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 potential launch of Beyond Tobacco™, in addition to the following: Potential outcomes from planned upgrades to Taat’s production facility equipment. 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 Lifestyle & Wellness Ltd. can be found under the Company’s profile on http://sedar.com.