Patent, product development deal may
significantly expand international reach of Bidi Vapor technology,
formulation
GRANT,
Fla., June 13, 2022 /PRNewswire/ -- Kaival
Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the
"Company," or "we"), the U.S. distributor of all products
manufactured by Bidi Vapor, LLC ("Bidi Vapor"), which are intended
for legal-age nicotine users, today announced it reached an
agreement with Philip Morris Products S.A. ("PMPSA"), a wholly
owned affiliate of Philip Morris International Inc. ("PMI") (NYSE:
PM), for the development and distribution of electronic nicotine
delivery system ("ENDS") products in markets outside of the U.S.,
subject to market (or regulatory) assessment.
Kaival Brands Reaches Agreement with Philip
Morris International for International Distribution
The Company's recently formed, wholly owned subsidiary, Kaival
Brands International, LLC ("KBI"), entered into an international
licensing agreement with PMPSA on June 13,
2022 (the "International Agreement"). The International
Agreement grants to PMPSA a license of certain intellectual
property rights relating to Bidi Vapor's premium ENDS
device, known as the BIDI® Stick in the U.S., as
well as potentially newly developed devices, to permit PMPSA to
manufacture, promote, sell, and distribute such ENDS device and
newly developed devices, in international markets, outside of the
U.S. The parties believe this agreement promotes their joint vision
of a smoke-free future.
"We believe that in addition to the BIDI® Stick
having wide acceptance among legal-age nicotine users in
the United States, Bidi Vapor's
numerous decisions around design; responsible adult-oriented
marketing and stringent youth-access prevention measures; and
sustainability bolstered its appeal to PMI," said Niraj Patel, CEO of Kaival Brands. "We, along
with PMI and Bidi Vapor share the vision of a smoke-free future.
The BIDI® Stick offers legal-age nicotine users a
high-quality alternative to cigarettes that satisfies their taste
preferences. Further, we, along with Bidi Vapor, are committed to
prioritizing the appropriate regulation and responsible
commercialization, inclusive of taking the necessary measures to
make sure these products do not appeal to unintended audiences,
including youth. By example, Bidi Vapor does not engage in direct
online sales to consumers and requires age-verification contracts
with our distributors and retailers.
"While Bidi Vapor continues to
pursue the U.S. Food and Drug Administration premarket tobacco
product authorization, cooperation with a major multi-national
company like PMI, a leader in scientifically substantiated
smoke-free products, opens doors on a global scale. Kaival Brands
looks forward to a long productive relationship with PMI, to
accelerate the end of smoking."
PMI is delivering a multi-category portfolio of smoke-free
products in a variety of usage, taste, price, and technology
options—intended to accelerate the delivery of a smoke-free future.
"We believe that adding PMI's vast network of possible retail
partners to our portfolio will potentially create a substantial new
revenue stream for us," Mr. Patel said.
"We have previously mentioned our intention to broaden our
current smoke-free product portfolio for adults who would otherwise
continue to smoke cigarettes or use other nicotine products. This
agreement supports that vision and is another step toward
accelerating the delivery of a smoke-free future. We are excited to
start our agreement with Kaival Brands—led by CEO Niraj Patel—who shares the same vision as we do,
to accelerate the end of combustible cigarette smoking," says PMI
President E-Vapor, Ashok
Rammohan.
"We are grateful for the opportunity to work with such an
established and well-respected organization like PMI and its
leadership team headed by Chief Executive Officer Jacek Olczak," Mr. Patel said. "But most
important to us was our mutual core values of strictly compliant
manufacturing combined with a responsible, adult-focused marketing
of products that people can trust. It's the only way we can truly
help adult smokers around the globe. To that end, we want to
replace cigarettes with smoke-free products as fast as possible. We
look forward to reporting international market launches and are
excited about where this agreement may lead."
ABOUT BIDI VAPOR
Based in Melbourne, Florida,
Bidi Vapor maintains a commitment to responsible adult-focused
marketing, strict youth access prevention measures and
age-verification standards, as well as sustainability through its
BIDI® Cares recycling program. Bidi Vapor's device, the
BIDI® Stick, is a premium product made with high-quality
components, a UL-certified battery and technology designed to
deliver a consistent vaping experience for adult smokers 21 and
over. Bidi Vapor is also adamant about strict compliance with all
federal, state, and local guidelines and regulations. At Bidi
Vapor, innovation is key to its mission, with the BIDI®
Stick promoting environmental sustainability, while providing a
unique vaping experience to adult smokers.
For more information, visit www.bidivapor.com
ABOUT KAIVAL BRANDS
Based in Grant, Florida, Kaival
Brands Innovations Group, Inc., is a company focused on growing and
incubating innovative and profitable products into mature and
dominant brands in their respective markets. Our vision is to
develop internally, acquire, own, or exclusively distribute these
innovative products and grow each into dominant market-share brands
with superior quality and recognizable innovation. Kaival Brands
and Philip Morris International Inc. are the exclusive global
distributors of products manufactured by Bidi Vapor.
Learn more about Kaival Brands at www.ir.kaivalbrands.com
Forward-Looking
Statements
This press release includes statements that constitute
"forward-looking statements" within the meaning of federal
securities laws, which are statements other than historical facts
that frequently use words such as "anticipate," "believe,"
"continue," "could," "estimate," "expect," "forecast," "intend,"
"may," "plan," "position," "should," "strategy," "target," "will,"
and similar words. All forward-looking statements speak only as of
the date of this press release. Although we believe that the plans,
intentions, and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance
that these plans, intentions, or expectations will be achieved.
Therefore, actual outcomes and results could materially differ from
what is expressed, implied, or forecasted in such statements. Our
business may be influenced by many factors that are difficult to
predict, involve uncertainties that may materially affect results,
and are often beyond our control. Factors that could cause or
contribute to such differences include, but are not limited to, the
success of our agreement with PMI, how quickly international
markets adopt our product, the timing and results of Bidi Vapor's
appeal of the FDA's PMTA denials for its non-tobacco flavored ENDS
products; the scope of future FDA enforcement of regulations in the
ENDS industry; the FDA's approach to the regulation of synthetic
nicotine and its impact on our business; potential federal and
state flavor bans and other restrictions on ENDS products; the
duration and scope of the COVID-19 pandemic and impact on the
demand for the products we distribute; the actions governments,
businesses, and individuals take in response to the pandemic,
including mandatory business closures and restrictions on onsite
commercial interactions; the impact of the pandemic and actions
taken in response to the pandemic on global and regional economies
and economic activity; the pace of recovery when the COVID-19
pandemic subsides; general economic uncertainty in key global
markets and a worsening of global economic conditions or low levels
of economic growth; the effects of steps that we could take to
reduce operating costs; our inability to generate and sustain
profitable sales growth, including sales growth in the
international markets; circumstances or developments that may make
us unable to implement or realize anticipated benefits, or that may
increase the costs, of our current and planned business
initiatives; changes in government regulation or laws that affect
our business; significant changes in our relationships with our
distributors or sub-distributors; and those factors detailed by us
in our public filings with the Securities and Exchange Commission.
All forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary
statements. Except as required under the federal securities laws
and the Securities and Exchange Commission's rules and regulations,
we do not have any intention or obligation to update any
forward-looking statements publicly, whether as a result of new
information, future events, or otherwise.
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SOURCE Kaival Brands