Kaival Brands Innovations Group, Inc. (NASDAQ:
KAVL) ("Kaival Brands," the "Company" or "we," "our" or
similar terms), the exclusive distributor of all products
manufactured by Bidi Vapor, LLC ("Bidi Vapor"), including the BIDI®
Stick electronic nicotine delivery system (ENDS), which are
intended for adults 21 and over, today highlights the official
launch of the VEEBA disposable e-vapor product across the United
Kingdom, reported by Philip Morris Limited, UK and Ireland (PML),
on February 27, 2023.
This past summer, Philip Morris Products S.A.
(PMPSA), a subsidiary of Philip Morris International (PMI) entered
into a licensing agreement with a subsidiary of Kaival Brands,
allowing for the patents, methods and technology to develop
products based on the premium, self-contained ENDS called the BIDI®
Stick, the No. 1-selling, self-contained ENDS device in the United
States according to data from New York-based Nielsen. The VEEBA
device is a result of this agreement.
As reported by Philip Morris Limited, UK and
Ireland, at the time of launch: “In accordance with PMI’s
responsible marketing practices, VEEBA’s packaging, device and
flavor descriptors have been specifically designed to appeal to
adult smokers only. VEEBA has not been commercialized with flavor
descriptors that may appeal to youth, such as images or
descriptions of candies or desserts, or brightly colored or flashy
devices or packaging. Instead, subtle colors and functional flavor
descriptors work together with PML’s youth-access prevention
program, to focus on providing existing adult nicotine users and
adult smokers with access to VEEBA.”
Nirajkumar Patel, Chief Science and Regulatory
Officer of Kaival Brands, says, “VEEBA and BIDI® Stick are
science-based, premium, responsible, recyclable and disposable
devices, developed specifically for use by adult smokers and
existing adult nicotine users who are looking for a better
alternative to continued smoking. Retailers can feel assured that
by listing BIDI® Stick here in the United States—or VEEBA outside
of the United States—they are stocking a smoke-free product that
adheres to local laws and in many cases, strives to go even
further.”
In addition, recycling programs for VEEBA and
BIDI® Stick enable and encourage users to dispose of used devices
in a responsible and sustainable manner, with products cleaned and
separated by material type, and then recycled into raw formats that
manufacturers can use to make new products.
“The U.K. represents a top market for the
international distribution of VEEBA with a mature and educated
vaping community. Since the official launch of VEEBA in Canada last
year, we are encouraged to see additional market expansions, which
in turn creates additional royalty payments for the sale of each
unit that is manufactured and sold,” said Eric Mosser, President
and Chief Operating Officer of Kaival Brands. “A responsible,
disposable device that can fulfil the needs of existing adult
nicotine users is now available in additional international
markets, and we look ahead to future growth while striving for
excellence in quality, compliance, and sustainability.”
ABOUT KAIVAL BRANDS
Based in Grant-Valkaria, Florida, Kaival Brands
is a company focused on incubating innovative and profitable
products into mature and dominant brands, with a current focus on
the distribution of electronic nicotine delivery systems (ENDS)
also known as “e-cigarettes”. Our business plan is to seek to
diversify into distributing other nicotine and non-nicotine
delivery system products (including those related to hemp-derived
cannabidiol (known as CBD) products. Kaival Brands and Philip
Morris Products S.A. (via sublicense from Kaival Brands) are the
exclusive global distributors of all products manufactured by Bidi
Vapor.
Learn more about Kaival Brands at
https://ir.kaivalbrands.com/overview/default.aspx.
ABOUT BIDI VAPOR
Based in Melbourne, Florida, Bidi Vapor
maintains a commitment to responsible, adult-focused marketing,
supporting age-verification standards and sustainability through
its BIDI® Cares recycling program. Bidi Vapor's premier 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.
Nirajkumar Patel, the Company’s Chief Science
and Regulatory Officer and director, owns and controls Bidi Vapor.
As a result, Bidi Vapor is considered a related party of the
Company.
For more information, visit
www.bidivapor.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release and the statements of the
Company’s management and partners included herein and related to
the subject matter herein includes statements that constitute
“forward-looking statements” (as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended), which are statements
other than historical facts. You can identify forward-looking
statements by 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 (including, without limitation, the results of
PMI’s VEEBA marketing efforts as described herein and the impact of
such efforts on the Company’s results of operations) could
materially and adversely 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: (i) future actions by the FDA in
response to the 11th Circuit Court’s decision that could impact our
business and prospects, (ii) the outcome of FDA’s scientific review
of Bidi Vapor’s pending PMTAs, (iii) the results of international
marketing and sales efforts by Philip Morris International, the
Company’s international distribution partner, (iv) how quickly
domestic and international markets adopt our products, (v) the
scope of future FDA enforcement of regulations in the ENDS
industry, (vi) the FDA’s approach to the regulation of synthetic
nicotine and its impact on our business, (vii) potential federal
and state flavor bans and other restrictions on ENDS products,
(viii) the duration and scope of the COVID-19 pandemic and impact
on the demand for the products we distribute, (ix) general economic
uncertainty in key global markets and a worsening of global
economic conditions or low levels of economic growth, (x) the
effects of steps that we could take to reduce operating costs, (xi)
our inability to generate and sustain profitable sales growth,
including sales growth in U.S. and international markets, (xii)
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, (xiii) significant
changes in our relationships with our distributors or
sub-distributors and (xiv) other factors detailed by us in our
public filings with the Securities and Exchange Commission,
including the disclosures under the heading “Risk Factors” in our
Annual Report on Form 10-K for the fiscal year ended October 31,
2022, filed with the Securities and Exchange Commission on January
27, 2023 and accessible at www.sec.gov. 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.
Investor Relations:Stephen Sheriff, Director of
Communications and
AdministrationIr.kaivalbrands.cominvestors@kaivalbrands.com
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