Kaival Brands Reaches Licensing Agreement with Philip Morris
Jun 14, 2022 By MarketDepth
Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) announced yesterday after the market close that it has reached an agreement with Philip Morris Products S.A. to develop and distribute electronic nicotine delivery system (“ENDS”) products in markets outside of the U.S.
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Shares of Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) opened over 43% higher than its previous close.
Agreement with Philip Morris
Kaival Brands’ recently formed subsidiary, Kaival Brands International, had entered into an international licensing agreement with Philip Morris Product S.A., granting the latter a license of certain intellectual property rights relating to Bidi Vapor’s premium ENDS device, known as the BIDI® Stick in the U.S.
“While Bidi Vapor continues to pursue the U.S. Food and Drug Administration premarket tobacco product authorization, cooperation with a major multi-national company like PMI, a leader in scientifically substantiated smoke-free products, opens doors on a global scale. Kaival Brands looks forward to a long productive relationship with PMI, to accelerate the end of smoking.”Niraj Patel, CEO of Kaival Brands
PMI’s new focus is on delivering a multi-category portfolio of smoke-free products in a variety of usage, taste, price, and technology options—intended to accelerate the delivery of a smoke-free future. The agreement with Kaival also permits PMPSA to manufacture, promote, sell, and distribute ENDS devices and newly developed devices, in international markets, outside of the U.S.
“We believe that in addition to the BIDI® Stick having wide acceptance among legal-age nicotine users in the United States, Bidi Vapor’s numerous decisions around design; responsible adult-oriented marketing and stringent youth-access prevention measures; and sustainability bolstered its appeal to PMI.”Niraj Patel, CEO of Kaival Brands