COO Eric Mosser
will take helm of U.S. distributor for Bidi Vapor products;
Niraj Patel to remain on Board of
Directors
GRANT, Fla. , June 27,
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 that its Chief Executive Officer and founder,
Nirajkumar Patel, will transition to
Chief Science and Regulatory Officer. Eric
Mosser, the Company's current Chief Operating Officer, will
become President and remain COO. Mr. Mosser will serve as the
Company's principal executive officer for purposes of its filings
with the Securities and Exchange Commission. Mr. Patel will remain
on the Board of Directors for Kaival Brands.
COO Eric
Mosser will take helm of U.S. distributor for Bidi Vapor
products; Niraj Patel to remain on
Board of Directors
The management changes follow the Company's recently announced
international licensing agreement with a Philip Morris
International ("PMI") affiliate, Philip Morris Products S.A.
("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 electronic nicotine delivery system ("ENDS")
device, 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.
"What Mr. Patel has accomplished, from initial concept to an
international distribution agreement with Philip Morris is
extraordinary," stated Eric Mosser,
President and Chief Operating Officer. "With unwavering belief and
integrity, he established himself as a true visionary within the
vaping category. Mr. Patel has been both inventor and salesman,
developing a product and everything that goes around it to make it
successful. We have grown from a no-name brand to the No. 1-selling
self-contained disposable ENDS device in the U.S based on the
Nielsen retail sales data for the 52-week period ending
June 4, 2022, according to a recent
Goldman Sachs' Equity Research Report. We intend to scale what Mr.
Patel has created into a new global brand and company. Management
is dedicated to maintaining the core values of integrity,
compliance and youth-access prevention that he instilled in the
company. I am excited to take on the new leadership role within
Kaival Brands and honored to continue Mr. Patel's vision and create
sustained growth of our brand in the
United States and also now internationally through our
agreement with PMPSA."
The transition will allow Mr. Patel to focus on developing new
products and expanding the Bidi Vapor product portfolio, which is
directly related to the new agreement with PMPSA, and allow Mr.
Mosser to focus on expanding sales distribution channels and
increasing the revenues and profits of Kaival Brand.
"My passion for the business is in creating, designing, and
delivering new products for adult tobacco users to the market," Mr.
Patel said. "Mr. Mosser understands the core values, mission and
goals of the Company, and I am confident he will take Kaival Brands
to new levels."
The management changes are effective immediately, with roles and
responsibilities to transfer over the coming weeks.
Preferred Stock
Conversion
On June 24, 2022, Kaival Holdings,
LLC ("KH"), the Company's controlling stockholder, and an entity
owned and controlled by Mr. Patel and Mr. Mosser, exercised its
right to convert its 3,000,000 shares of Series A Restricted
Preferred Stock into 25,000,000 shares of the Company's Restricted
Common Stock. The Board, after reviewing and discussing KH's desire
to convert the Series A Preferred Stock prior to November 1, 2023, determined that there exists a
justifiable reason for allowing the early conversion of the Series
A Preferred Stock, namely the occurrence of the entry into the
international licensing agreement with PMPSA, and approved the
early conversion.
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