$KAVL Kaival Brands Gears Up for International Exp

$KAVL Kaival Brands Gears Up for International Expansion with Leadership Changes

https://www.prnewswire.com/news-releases/kaiv...75483.html

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.

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.