- Kaival Brands Innovations Group Inc. promotes innovative brand solutions. It is currently the exclusive global distributor for the first eco-friendly vapor product on the market, Bidi(TM) Stick.
- Manufactured by Bidi Vapor LLC, the Bidi(TM) Stick stands to revolutionize the vaping experience. It is a completely self-contained, disposable and recyclable product made with high-quality components and innovative technology.
- On September 8, 2020, Kaival Brands announced that Bidi Vapor LLC had submitted its Premarket Tobacco Product application to the U.S. Food and Drug Administration.
- Kaival Brands is also working to expand distribution of the Bidi(TM) Stick internationally into Guam, Canada, the European Union, the United Kingdom, Australia and New Zealand.
- The partnership with Bidi Vapor has helped Kaival Brands expedite its growth, as the company reported $22.5 million in revenue in Q2 2020.
Kaival Brands Innovations Group (OTCQB: KAVL) is focused on growing and incubating innovative and profitable products into mature, dominant brands. It aims to develop internally, acquire or exclusively distribute these products, helping them grow into market-share leaders by providing superior quality that is recognizable in their individual industries.
Formerly known as Quick Start Holdings Inc., the company changed its name to Kaival Brands Innovations Group Inc. (also known as Kaival Brands) in July 2019. Headquartered in Grant, Florida, the company commenced business operations on March 9, 2020.
Bidi(TM) Stick – Revolutionizing the Vaping Experience
On March 9, 2020, Kaival Brands entered into a partnership with Bidi Vapor LLC. The latter granted Kaival Brands exclusive global distribution rights for the innovative Bidi(TM) Stick.
Bidi(TM) Stick is a completely self-contained disposable product that is tamper-proof and recyclable. The innovative product is made from high-quality components and equipped with a long-lasting battery and class A nicotine. Its product engineering also includes a sensitivity control system, along with a proven mechanism designed to help identify and eliminate counterfeit products.
Available in 11 flavors, the Bidi(TM) Stick offers a premium vaping experience for adult consumers only. From its packaging design to its marketing strategies, Bidi Vapor makes sure that everything is compliant with government regulations.
On March 31, 2020, Kaival Brands partnered with QuikfillRx Digital as a digital service provider to help promote and commercialize the Bidi(TM) Stick. As a direct result of the partnership, Kaival Brands received back-to-back orders for the vaping device, totaling approximately $135,000, from sizable national convenience chains.
On September 8, 2020, the company announced that Bidi Vapor had submitted its Premarket Tobacco Product application (“PMTA”) to the U.S. Food and Drug Administration (“FDA”) for review. In total, over 285,000 pages of research, studies and surveys were submitted to support the application of Bidi(TM) Stick’s 11 variants.
“We are confident that, upon review, the FDA will authorize Bidi Vapor’s Bidi(TM) Stick for continued marketing in the United States,” Niraj Patel, President and CEO of Kaival Brands, stated in a news release (http://nnw.fm/unAyG).
Bidi Vapor is an industry leader in recycling – a position that was furthered through the creation of the Bidi Cares Initiative. The program encourages users to recycle their used Bidi(TM) Sticks instead of trashing them. As motivation, Bidi Vapor offers a free Bidi(TM) Stick for every 10 used devices recycled by a consumer. Kaival Brands is the exclusive recycling provider for the initiative.
Partnership Impact and Market Outlook
Bidi Vapor is a related party to Kaival Brands, as it is owned by Kaival Brands CEO Nirajkumar Patel. Patel is also the majority stockholder of Kaival Brands, placing both entities under common control.
The partnership has already had a positive impact on Kaival Brands, helping the company expedite growth, as evidenced by its Q2 financial results. According to Kaival Brands’ consolidated fiscal results for the quarter that ended on April 30, 2020, its revenues grew to approximately $22.5 million from no revenue in the same quarter of 2019. The company also scored a gross profit of $4.2 million for the three-month period. Net income was reported at $2.8 million for the quarter, compared to a net loss of about $4,000 in the second quarter of 2019. The company ended the second quarter of 2020 with a cash balance of $2 million (http://nnw.fm/44sq4).
The positive results are primarily an effect of Bidi(TM) Stick distribution amid the growing worldwide demand for high-quality vape products, as Patel explained in a news release. “Our focus now is to continue to increase revenues by increasing Bidi Vapor’s market share in the vaping industry,” he added.
Internationally, Kaival Brands has already taken steps to expand distribution of the Bidi(TM) Stick into Guam, Canada, the European Union, the United Kingdom, Australia and New Zealand.
To this end, the company has set up a market engagement and sales force to reach a higher volume of retail and wholesale customers. It also created a dedicated customer support team to provide high-quality service and an enhanced customer experience.
Kaival Brands is dedicated to developing innovative and viable options for adults who use tobacco and vape products and want a premium experience. The company wants to set higher standards to transform perceptions and elevate consumer experience in the vape and CBD industries, with a goal of increasing market share in the ever-growing vaping industry. In 2019, the reported global market for the vaping industry alone was $12.4 billion. These forecasts indicate a potential CAGR of 23.8% through 2027.
Cancellation of 300 Million Shares of Common Stock
In August 2020, the company canceled 300 million shares of common stock, marking a 52.1 percent reduction in its issued and outstanding shares of common stock (http://nnw.fm/W7s9T). Currently, the company’s outstanding common shares total 277,282,630. The cancelation was done in exchange for three million shares of Series A Preferred Stock. The Series A Preferred Stock cannot be converted before November 2023, barring any event that may trigger early conversion.
According to Patel, this move will benefit all shareholders and help maintain stability of the market pricing of remaining common stock. The overall goal is to increase value for long-term investors.
Nirajkumar Patel is the CEO, CFO, President, Treasurer and Director of Kaival Brands and owner of Bidi Vapor LLC. In 2004, Patel received a Bachelor of Science in pharmaceutical sciences from AISSMS College of Pharmacy in Pune, India. He moved to the United States in 2005, and he continued his education at the Florida Institute of Technology, where he graduated in 2009 with a master’s degree in medicinal and pharmaceutical chemistry. He currently holds a Six Sigma Black Belt Certification.
Eric Mosser is the COO, Secretary and Director of Kaival Brands. Mosser attended Arizona State University, where he studied business management. In 2004, he graduated from Rio Salado College with an associate degree in applied science in computer technology.
For more information, visit the company’s website at www.KaivalBrands.com.
NOTE TO INVESTORS: The latest news and updates relating to KAVL are available in the company’s newsroom at http://nnw.fm/KAVL
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