*
skip to Main Content

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

Shares in alternative tobacco specialist TAAT Lifestyle & Wellness Ltd. (CSE: TAAT) are up 44% year-to-date and the news flow from the nicotine-free cigarette maker continues to bear out investors’ positive view. TAAT only started selling its products in the US in December but the first few weeks of sales, for the moment only based in Ohio, showed a company on track to build a loyal following, and build it fairly quickly.

Around 60% of retailers involved in the initial sales have reordered at least once, some asking for bigger quantities than in the first batch and some buyers are already requesting the brand by name.

A new deal penned this week with Texas-based sales agency Crossmark will help the company expand across the US and into Canada. Crossmark sells across more than 100,000 retail shops in North America and will use its extensive promotional, trade marketing and analytics capabilities to drive US-wide sales growth.

TAAT is starting to focus on digital sales strategy

The nicotine-free cigarette maker is also focusing on online sales. By November nearly one third of all visitors to the TryTAAT landing page requested a sample pack of the nicotine-free hemp cigarettes, an exceptional conversion rate by industry standards. The planned TAAT online store is expected to accelerate the adoption of TAAT as a replacement for tobacco cigarettes.

While retail investors are only becoming aware of the alternative tobacco maker now, venture capital had already discovered the company late last year when a group of investors, including Debbie Chang, co-founder of Horizon Ventures, exercised almost 5m common share purchase warrants on TAAT at C$2.00 each. This provided the company with total gross proceeds of C$10m (£5.92m) which were then used to accelerate commercialisation efforts.

Related

The company is still relatively little known among investors but this began to change this week when shares rallied a walloping 50% in one day. The trigger? The stock made it onto the radar of Reddit trader and YouTuber Keith Gill, aka Roaring Kitty. When a Wall Street Journal interview with Gill carried a photograph showing an open notepad with TAAT on the list of stocks that Gill was looking at, shares rallied a stonking 50% on the day to $3.06. Since then they have settled back at $2.68 but TAAT stock is still up 44% since the start of the year and building on last year’s impressive rally of almost 120%.

TAAT is only just getting started. With its lifestyle and wellness approach to smoking aimed at existing smokers keen to replace nicotine and tobacco-based cigarettes with a healthier option it is well positioned to carve out its own space in the $814 billion global tobacco industry. The cigarettes are produced using proprietary base material called Beyond Tobacco, which undergoes a 14-step production process to include a patent-pending refinement technique that causes the material to have a taste and smell similar to actual tobacco.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments

Back To Top