Tobacco One Deal Falls Though

Source from:  www.tobaccoasia.com 02/25/2009

Tobacco One, Inc. has announced the cancellation of a US$9.5 million agreement to purchase a leading US tobacco product manufacturer. The company has been unable to complete the due diligence required to the satisfaction of the shareholders and financial partners. On July 1, 2008, the company announced that it has purchased a regionally popular cigarette brand from a Mexico City businessman for cash plus common stock. Tobacco One's international marketing team finished a 3-month feasibility study focusing on national expansion and consumer acceptance. During this study, Tobacco One in partnership with the Mexico City marketing firm Integra Marketing, S.A. de C.V. obtained numerous commitments that will result in expanded distribution nationwide. "While we are disappointed in the cancellation of the intended acquisition, recently we acquired a Mexican company in Mexico which sales are thriving and is projected to be a more beneficial acquisition to our shareholders." Shawn Ulizio, Tobacco One's president and c.e.o. said. "The new brand is clearly positioned to be a market leader in Mexico's newly emerging discount cigarette price tier, and Tobacco One is nicely positioned to dominate in this specialized tobacco category." Enditem