TAAT Lifestyle & Wellness Moves to Acquire Leading Hemp Cigarette Brand Redwood Reserves
On July 10, 2020, TAAT Lifestyle & Wellness Ltd. (CSE: TAAT; Frankfurt: 2TP2) announced that it had signed a letter of intent to acquire Redwood Reserves Ltd., one of the largest and most established U.S. hemp cigarette brands. The proposed deal consists of $1,155,000 in cash and 2,390,000 common shares of TAAT. If completed, the acquisition would give TAAT full control of Redwood’s operations, production facilities, and its nationwide distribution network.
Overview of the Letter of Intent
The letter of intent outlines a definitive agreement to be negotiated and finalized by July 31, 2020, subject to customary closing conditions such as due diligence and regulatory approvals. Upon closing, Redwood would become a wholly owned subsidiary of TAAT, allowing the company to integrate Redwood’s “seed-to-smoke” hemp cultivation and manufacturing capabilities into its own portfolio.
Redwood’s Seed-to-Smoke Operations and Product Line
Founded in Portland, Oregon in 2019, Redwood leverages the unique horticultural properties of the Willamette Valley to cultivate organically grown hemp. Its vertically integrated model tracks every step from seed to final product, ensuring consistent quality and traceability. Redwood has developed three proprietary hemp strains—Carolina Dream, Golden Redwood, and Wild Bourbon—each of which has undergone independent laboratory testing by Confident Cannabis. The lab reports are available at
The company’s product lineup includes its flagship hemp cigarettes sold in a stick format, pre‑rolled hemp joints, kief, single‑gram dabs, and flower offerings in 3.5‑gram and 7‑gram units. This diverse range positions Redwood as a versatile player in the growing smokable hemp segment.
Distribution Reach and Online Presence
Redwood’s products are currently stocked in more than 1,600 U.S. retail locations, including smoke shops and convenience stores in major markets such as New York City, Los Angeles, Dallas, Chicago, Boston, and San Francisco. Over the past six months, the brand has secured distribution agreements with more than one dozen national and regional firms, with ongoing discussions to expand further.
In addition to its brick‑and‑mortar footprint, Redwood has built strong online visibility through search engine optimization. Its website appears in Google’s Featured Snippets for queries such as “benefits of CBD cigarettes.” A product photo accompanying the announcement can be viewed at
Strategic Benefits for TAAT
TAAT expects the acquisition to deliver several concrete advantages:
- Production capacity: Access to Redwood’s efficient manufacturing system could lower the cost of producing TAAT’s Beyond Tobacco™ cigarettes by as much as 50% and increase overall supply bandwidth for the planned Q4 2020 launch.
- Proprietary smoking‑cessation insights: Redwood has published a study on the potential of its hemp cigarettes to aid tobacco cessation, featuring testimonials and success stories from users. The study is available at
- Cash flow: Because Redwood continues to generate revenue from its existing retail and online channels, the acquisition will provide TAAT with immediate cash flow from ongoing operations.
Leadership Perspectives
Dennis Grayson, Redwood’s Chief Executive Officer, commented on the transaction: “The emergence of the hemp industry in the United States took place very rapidly, and building the Redwood brand as an icon of Oregon’s one‑of‑a‑kind hemp ecosystem was very exciting to do. We took a boutique‑style approach to curating a lineup of artisanal and organic hemp products so that we could offer our customers a lifestyle‑driven brand that provides an unforgettable experience. This acquisition deal with TAAT reflects both how far we have come as a business, and how bustling our industry has become with the many popular applications of hemp, whether recreational or medicinal.”
Joe Deighan, Founder of TAAT, added: “We’re enthusiastic about acquiring Redwood for many reasons. Their organically‑grown proprietary strains of hemp have earned Redwood a loyal base of followers, in addition to strong relationships with retailers and distributors. Aside from that, having access to their production capacity can improve our production timelines for Beyond Tobacco™ and reduce costs considerably. Thus, bringing Redwood under TAAT’s umbrella is both an operational play for the Company itself, in addition to a marketing play to capitalize on the brand recognition of a proven and successful seed‑to‑smoke hemp company under great leadership.”
Market Context and Forward‑Looking Statements
TAAT positions its Beyond Tobacco™ line as a nicotine‑free, tobacco‑free alternative aimed at the US $814 billion global tobacco cigarette market. Research suggests cannabidiol (CBD) may help reduce tobacco consumption; a pilot study by the Beckley/Exeter program found that CBD treatment led to a reduction in cigarette consumption by as much as 40% (source:
The announcement includes forward‑looking statements regarding the anticipated launch of Beyond Tobacco™, the expected benefits from Redwood’s production capacity and distribution network, and potential regulatory developments. These statements reflect management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
For more details on the proposed acquisition, please refer to the original press release Here.
