$KAVL Kaival Brands Prepares to Support Growth with Extended Marketing and Sales Service Agreement
https://www.globenewswire.com/news-release/20...ement.html
GRANT, Fla., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) (“Kaival Brands”, the “Company” or “we”, “our” or similar terms), the exclusive U.S. distributor of all vapor products manufactured by Bidi Vapor, LLC (“Bidi Vapor”), which are intended for adults 21 and over, today announced it has reached a three-year extension agreement with QuikfillRx, LLC, the third party vendor responsible for executing Kaival Brands’ marketing and sales strategies.
As part of the agreement, QuikfillRx, LLC will be rebranded as Kaival Marketing Services (“KMS”) to more properly reflect the commitment of KMS to the success of Kaival Brands.
As previously reported, on August 23, 2022, in a “merits case” brought by Bidi Vapor, the 11th Circuit Court of Appeals overruled the Food and Drug Administration’s (the “FDA”) marketing denial order related to Bidi Vapor’s BIDI® Stick electronic nicotine delivery system (“ENDS”). That decision has allowed Bidi Vapor to continue to market (through Kaival Brands) all flavor varieties of the BIDI® Stick in the United States. All ENDS products on the market today that do not have marketing authorization from the FDA are subject to enforcement, at the FDA’s discretion.
The three-year extension with KMS was executed in preparation to support the anticipated improved sales volumes arising from this decision and the increase of BIDI® Stick sales and marketing activities. In addition to monthly cash payments, which will be lower than during the initial term of the agreement, and a one-time upfront vested common stock option award, KMS will be eligible to receive performance-based common stock option awards from Kaival Brands that can vest annually based on total net revenues and profit margins achieved by Kaival Brands from KMS’s efforts over the term of the agreement, with a maximum vesting to occur upon achievement of $180,000,000 in total net revenues reported within the 3-year term.
Eric Mosser, President and Chief Operating Officer of Kaival Brands, stated, “KMS has been an integral part of the Kaival story since our inception. Their industry knowledge and expertise, experience working with our team, and unmatched around-the-clock service is best in class. As part of ongoing corporate efforts in anticipation of increasing sales activity following Bidi Vapor’s merits case win, it became clear that reaffirming our relationship with KMS was an important step to manage growth.”
Russell Quick, President of KMS, stated, “We are happy to continue our service with Kaival Brands and its commitment to responsible marketing. Our combined efforts at preventing underage use of vaping devices and focus on the needs of legal-age smokers looking for an alternative to combustible cigarettes, stands as a model for the industry.”
KMS has served as the primary marketing and sales service provider for Kaival Brands since 2020. In addition to its sales force, KMS brings over 100 contracted employees dedicated to supporting Kaival Brands’ management team through its next stage of growth.
Additional information regarding the marketing and sales agreement between Kaival Brands and KMS will be provided in a Form 8-K to be filed by Kaival Brands with the Securities and Exchange Commission.
https://www.globenewswire.com/news-release/20...ement.html
GRANT, Fla., Nov. 15, 2022 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) (“Kaival Brands”, the “Company” or “we”, “our” or similar terms), the exclusive U.S. distributor of all vapor products manufactured by Bidi Vapor, LLC (“Bidi Vapor”), which are intended for adults 21 and over, today announced it has reached a three-year extension agreement with QuikfillRx, LLC, the third party vendor responsible for executing Kaival Brands’ marketing and sales strategies.
As part of the agreement, QuikfillRx, LLC will be rebranded as Kaival Marketing Services (“KMS”) to more properly reflect the commitment of KMS to the success of Kaival Brands.
As previously reported, on August 23, 2022, in a “merits case” brought by Bidi Vapor, the 11th Circuit Court of Appeals overruled the Food and Drug Administration’s (the “FDA”) marketing denial order related to Bidi Vapor’s BIDI® Stick electronic nicotine delivery system (“ENDS”). That decision has allowed Bidi Vapor to continue to market (through Kaival Brands) all flavor varieties of the BIDI® Stick in the United States. All ENDS products on the market today that do not have marketing authorization from the FDA are subject to enforcement, at the FDA’s discretion.
The three-year extension with KMS was executed in preparation to support the anticipated improved sales volumes arising from this decision and the increase of BIDI® Stick sales and marketing activities. In addition to monthly cash payments, which will be lower than during the initial term of the agreement, and a one-time upfront vested common stock option award, KMS will be eligible to receive performance-based common stock option awards from Kaival Brands that can vest annually based on total net revenues and profit margins achieved by Kaival Brands from KMS’s efforts over the term of the agreement, with a maximum vesting to occur upon achievement of $180,000,000 in total net revenues reported within the 3-year term.
Eric Mosser, President and Chief Operating Officer of Kaival Brands, stated, “KMS has been an integral part of the Kaival story since our inception. Their industry knowledge and expertise, experience working with our team, and unmatched around-the-clock service is best in class. As part of ongoing corporate efforts in anticipation of increasing sales activity following Bidi Vapor’s merits case win, it became clear that reaffirming our relationship with KMS was an important step to manage growth.”
Russell Quick, President of KMS, stated, “We are happy to continue our service with Kaival Brands and its commitment to responsible marketing. Our combined efforts at preventing underage use of vaping devices and focus on the needs of legal-age smokers looking for an alternative to combustible cigarettes, stands as a model for the industry.”
KMS has served as the primary marketing and sales service provider for Kaival Brands since 2020. In addition to its sales force, KMS brings over 100 contracted employees dedicated to supporting Kaival Brands’ management team through its next stage of growth.
Additional information regarding the marketing and sales agreement between Kaival Brands and KMS will be provided in a Form 8-K to be filed by Kaival Brands with the Securities and Exchange Commission.
