Tag: Kaival Brands Innovation Group

  • Bidi Vapor to Market Menthol Sticks Despite MDO

    Bidi Vapor to Market Menthol Sticks Despite MDO

    Bidi Vapor will continue to manufacture and market its Artic (menthol) Bidi Stick in the United States despite receiving a marketing denial order (MDO) for the product, according to a trading update issued by Kaival Brands Innovations Group, the exclusive distributor of Bidi Vapor products.

    As of Sept. 10, the U.S. Food and Drug Administration has issued MDOs for some 992,000 electronic nicotine delivery system products from 168 companies. Bidi Vapor received an MDO for its non-tobacco flavored Bidi Sticks, including its Artic (menthol) Bidi Stick.

    The company, however, insists the FDA mischaracterized the Artic (menthol) Bidi Stick as flavored. Because its Arctic Bidi Stick is menthol, Bidi Vapor believes that this product is not subject to the MDO.

    “This position is aligned with the FDA’s public statements and press releases stating that tobacco and menthol ENDS are not deemed flavored products subject to the MDOs,” the company wrote in a press note. “Accordingly, along with the Classic (tobacco) Bid Stick, Bidi intends to continue to manufacture and market its Arctic (menthol) Bidi Stick for distribution by us.”

    The company, which has historically derived nearly all its revenues from sales of flavored Bidi Sticks, appears willing to accept the risk of enforcement.

    “If the FDA disagrees with Bidi Vapor’s position, issues a warning letter, or takes other action against Bidi Vapor resulting in us not being able to distribute the menthol (Arctic) Bidi Stick in the United States, or consumers do not purchase the tobacco (Classic) or menthol (Arctic) Bidi Sticks, our revenues and, thereby our financial results and condition, would be materially adversely affected, Kaival Innovations Group wrote in its news release.  

    For the three and nine months ended July 31, 2021, Arctic (menthol) Bidi Stick constituted approximately 15.2 percent and 18.5 percent, respectively, of the company’s total Bidi Sticks sales.

  • Bidi Vapor Parent, Kaival Brands to Trade on NASDAQ

    Bidi Vapor Parent, Kaival Brands to Trade on NASDAQ

    Image: immimagery

    Kaival Brands Innovations Group, the exclusive global distributor of products manufactured by Bidi Vapor, has been approved to list the company’s common stock on the Nasdaq Capital Market. The ticker symbol will remain unchanged, as “KAVL,” and the stock will begin trading on Nasdaq at the opening of the market on July 29, 2021.

    “I am pleased to announce that the company has been approved to begin trading on Nasdaq,” said Niraj Patel, Kaival’s founder and CEO, in a statement. “This event represents another monumental milestone in our company’s short history.”

    “We have worked diligently to achieve this goal and are humbled and grateful on the inclusion to the Nasdaq,” said Patel. “We are more enthusiastic than ever about being able to harness Kaival’s exciting potential.”

    “Step by step, we continue our work to build a world-class, global organization—our elevation to Nasdaq represents a very large strategic evolution for the company,” noted Eric Mosser, chief operating officer of Kaival Brands.

  • Next Generation Labs Nixes Patent Agreement with Kaival

    Next Generation Labs Nixes Patent Agreement with Kaival

    Photo: sorapop

    Next Generation Labs, which manufactures and markets bulk R-S, R- and S-isomer synthetic nicotine under its TFN brand, has terminated its Sept. 28, 2020, patent contribution agreement with Kaival Brands Innovation Group and Kaival Labs.

    The Patent Contribution Agreement related to the acquisition and commercial exploitation by Kaival of Next Generation Labs’ IP portfolio on combinational use of synthetic R- and S-isomer nicotine ratios in tobacco cessation products.

    In a press note, Next Generation Labs said Kaival Labs had published inaccurate and misleading statements relating to the use of patented synthetic nicotine for tobacco cessation products on its website. “Next Generation Labs wants to clarify that as a consequence of Kaival’s failure to perform its obligations under the Patent Contribution Agreement, all rights to the R-S synthetic nicotine cessation patent portfolio fully reverted to Next Generation Labs in May 2021,” Next Generation Labs wrote.

    Additionally, Kaival executed a confirmatory transfer agreement with Next Generation Labs relinquishing all rights to the Next Generation Labs patent portfolio for the commercialization of combinational TFN R-S nicotine relating to tobacco cessation products. Kaival is not an authorized agent of Next Generation Labs, nor is it authorized to use Next Generation Labs’ name, intellectual property or its TFN trademark on its products, in its product marketing or in any financial prospectus to investors, according to Next Generation Labs.

  • Kaival Brands Secures 2 Patents in China for Bidi

    Kaival Brands Secures 2 Patents in China for Bidi

    Photo: vegefox.com

    Kaival Brands Innovations Group has been granted two copyright protections and two patents by China.

    The first patent, China Patent No. 202020067263.5, is a utility model patent, and relates to the nozzle components of the Bidi Stick. The nozzle components play an integral role in delivering a consistent user experience. The second patent, China Patent No. 202030052391.8, is a design patent that covers the entire Bidi Stick product. Bidi Vapor has also secured copyrights for both the Bidi Stick and Bidi Cares names.

    Kaival believes that the Chinese vapor market presents a considerable business opportunity. Statista data projects the China combustible cigarette market to top $220 billion in 2021. Vape products are quickly gaining market share in China and if a mere 10 percent of combustible cigarette smokers transition to vape, China would be a $22 billion vape market opportunity. By comparison, Grandview Research anticipates the U.S. vape market to reach $7.4 billion in 2021.

    “The copyright and patent protection representations received from China are the first step in our planned journey to introducing the Bidi Stick into one of the world’s largest markets for vape products, China,” said George Chuang, independent director of Kaival Brands, in a statement. “I look forward to advising the company in my role as a board member in interfacing with potential distribution partners in China.”

    “Receiving two patents from China, along with copyright protections, should enhance our efforts to more effectively eliminate counterfeit players from the market, and being afforded these protections within a difficult market further validates our best-in-class product lineup” says Niraj Patel, founder and chief executive officer of Kaival Brands and Bidi Vapor. “Both Bidi Vapor and Kaival Brands are adamant about exceeding compliance standards in every global market, and as such our products are intended exclusively for adults 21 and over.”

    Following the latest patents, Kaival has intellectual property protections in the United States, the European Union, Australia and China. “We believe this puts us in a strong position to pursue new global markets that we have already received regulatory approval to enter,” says Patel.

  • Kaival to Reverse Split Stock Ahead of NASDAQ Listing

    Kaival to Reverse Split Stock Ahead of NASDAQ Listing

    Photo: Randy Harris

    Kaival Brands, the exclusive global distributor of all products manufactured by Bidi Vapor, has implemented a 1-for-12 reverse split of its common stock, effective prior to the opening of the market on July 20, 2021. The reverse stock split was implemented by the company in support of its application to list on the NASDAQ Capital Market.

    As a result of the reverse split at the 1-for-12 ratio, every 12 shares will be exchanged for one share of the common stock.

    “We are excited for the new phase of Kaival’s capital markets development as we progress to listing on the NASDAQ,” said Niraj Patel, CEO of Kaival Brands, in a statement.

    “Our board carefully considered the decision to effect the reverse split of our shares, which is critical for us to list on NASDAQ based on our current stock price. A reverse split is designed as an economically neutral, mathematical event that does not affect the intrinsic value of the company. While many companies execute reverse splits to avoid being delisted, our reverse split is in fact being done for just the opposite reason: to become qualified to list on the NASDAQ, which we believe will have many benefits for our company and shareholders.”

    The reverse split is intended to increase the per share stock price of the company’s common stock in order to meet NASDAQ’s requirement that the company’s common stock be $4 or higher as of the listing date. Prior to listing its common stock on NASDAQ, the company’s application must be approved.

    The company does not intend to issue fractional shares in connection with the reverse stock split. In order to avoid fractional shares of common stock, the number of shares issued to each stockholder will be rounded up to the nearest whole number in the event a stockholder would be entitled to receive less than one share of common stock as a result of the split. The reverse split will not affect any holder of the company’s common stock’s proportionate voting power, and all shares of common stock will remain fully paid and nonassessable.

  • Bidi Vapor Expansion Now 11 International Markets

    Bidi Vapor Expansion Now 11 International Markets

    Credit: Bidi Vapor

    Bidi Vapor successfully completed the regulatory process to enter seven additional international markets, bringing the total of new international countries open for distribution to 11.

    These new international markets include Spain, France, Italy, Germany, the Netherlands, Austria and the Czech Republic. Previously, on March 31, 2021, Kaival Brands announced that Bidi Vapor obtained market authorization for four countries: Australia, New Zealand, Russia and the United Kingdom.

    “We are very excited about pursuing our international opportunities,” said Niraj Patel, CEO of Kaival Brands, in a statement, noting how the countries posed both challenges and opportunities that the company is ready to take on.

    Kaival Brands is the exclusive distributor for Bidi Vapor’s primary offering, the Bidi Stick, which is the subject of a premarket tobacco product application now under review with the U.S. Food and Drug Administration.

  • Bidi Vapor Enters Bidi Stick Into Four New Markets

    Bidi Vapor Enters Bidi Stick Into Four New Markets

    Bidi Vapor successfully completed the regulatory process to enter four new, significant markets. Bidi Vapor’s primary offering, the Bidi Stick is a closed system disposable electronic nicotine-delivery system (ENDS).

    Bidi Vapor recently successfully received premarket authorization from the United Kingdom’s regulatory body, the Medicines and Healthcare products Regulatory Agency, to sell and market Bidi Vapor products through Kaival Brands in the U.K.

    Moreover, Bidi Vapor has successfully completed all necessary certifications and finished the process for distribution approvals to market and sell products in Russia, New Zealand and Australia.

    Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products.

    Niraj Patel, CEO Kaival Brands

    “We are extremely excited to roll out Bidi Vapor products in four significant, new markets for us,” said Niraj Patel, Kaival Brands’ CEO in a statement. “Once Kaival Brands solidifies local distribution agreements, we will begin to sell and market our full scope of products. We believe our first sales in each of these new regions will occur within the next six months with U.K. being the first.”

    Kaival Brands will showcase its Bidi Stick at the VOXPO virtual trade show on April 28–30.

    “We believe the Bidi Stick will be a welcomed entry into the U.K. market as long-time adult cigarette smokers look to transition to ENDS products,” said Patel, who is also president and CEO of Bidi Vapor.

    “While the VOXPO conference is our first international show, we anticipate participating in similar events in Australia, New Zealand and Russia. We see ample opportunity in these new markets, as the success we’ve seen in the United States shows us that once consumers discover an e-cigarette that can provide them a consistent, premium experience, they will welcome the option.”

  • Kaival Brands Appoints New Board Members Ahead of IPO

    Kaival Brands Appoints New Board Members Ahead of IPO

    Kaival Brands Innovations Group has appointed Paul Reuter, Carolyn Hanigan and Roger Brooks to its board of directors.

    In addition to gaining the experience and judgment that the new members will bring to the board, their appointments are intended to ensure the company complies with certain corporate governance rules ahead of its planned Nasdaq uplisting.

    “We are very pleased that Paul, Carolyn and Roger have agreed to join us as new members of the board,” said Niraj Patel, CEO of Kaival Brands, in a statement. “Coming off a remarkable year that demonstrated the strength of our team and products, these three individuals are joining the company at an exciting time. We look forward to benefiting from their diverse backgrounds and respective expertise.”

    Reuter brings nearly five decades of industry experience in small box retail as a journalist, editorial director, entrepreneur and speaker. He has launched two businesses, including MidWest Retail Group, where he served as chairman and founding partner from April 2013 through June 2019. He is also the founder of Kreative Collaborations, an industry consultancy.

    Prior to her retirement, Hanigan was the president of Reynolds American Innovation Co., an operating company of Reynolds American Inc. (RAI). Hanigan led the global vapor collaboration with British American Tobacco (BAT) up until RAI was acquired by BAT in 2017.

    Coming off a remarkable year that demonstrated the strength of our team and products, these three individuals are joining the company at an exciting time.

    Niraj Patel, CEO, Kaival Brands

    She was the architect of RAI’s U.S. reduced-risk products strategic direction to further the vision of transforming tobacco. Under her leadership, RAI prepared both the U.S. commercial execution and regulatory applications for the Glo tobacco-heating products, the Velo nicotine pouches, and the Alto, Ciro, Vibe and Solo nicotine vaporizers.

    Brooks is currently the chairman, treasurer and co-founder of Abierto Networks. Prior to his roles at Abierto Networks, from 1998 to 2008, Brooks was the lead independent director and member of the compensation and audit committees for Moldflow Corp. From 2017 to 2019, Brooks served as an independent director of Lytron Incorporated.

    Kaibal Brands recently reached $100 million in revenues.

  • Kaival Brands Reaches $100 Million in Revenue

    Kaival Brands Reaches $100 Million in Revenue

    Kaival Brands Innovations Group reported significant revenue and profitability milestones in the quarter ended Jan. 31, 2021. The company achieved a cumulative $100 million in revenues since it commenced business operations in March 2020, despite revenue slowdowns during the fourth quarter of 2020 due to packaging and labeling updates.

    During the fourth quarter of 2020, the company and Bidi Vapor made the decision to wash out inventory and repackage the entire product line in an effort to go “above and beyond” U.S. Food and Drug Administration packaging and labeling guidelines.

    First quarter 2021 revenues were $37.3 million, compared to revenues of $0 in the first quarter of 2020. “Given the significant expenses associated with infrastructure, start-up costs, marketing, legal and many other business necessities, we are proud of our ability to reach profitability so early on in our development,” said Niraj Patel, Kaival’s president and CEO, in a statement.

    “The gross profit number provides a glimpse into our future net profits as we continue to scale the business in a smart and efficient operational manner.”

    The gross profit number provides a glimpse into our future net profits as we continue to scale the business in a smart and efficient operational manner.

    Niraj Patel, president and CEO, Kaival

    From a revenue perspective, February and March have benefited from the company’s new distribution partnerships as well as the rollout of the Bidi Pouch. As such, the company expects revenues to increase during the second fiscal quarter ending April 31, 2021. “Given our current visibility, we remain very confident in our full-year fiscal 2021 revenue guidance of $400 million to $450 million,” Patel said.