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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