Kaival Brands (OTCQB: KAVL) Announces Plans to Launch Kaival-branded Hemp CBD Product Line
GRANT, Fla., July 14, 2021 /PRNewswire/ -- Kaival Brands Innovations Group, Inc. (OTCQB: KAVL) ("Kaival Brands," the "Company," or "we"), is the exclusive global distributor of products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), including the BIDI® Stick disposable electronic nicotine delivery system ("ENDS"), which is intended exclusively for adults 21 and over.
"I am excited to announce the upcoming launch of our new, lab-developed, proprietary CBD products," said Niraj "Raj" Patel, Founder & Chief Executive Officer of Kaival Brands. "Our mission is to set new industry standards by providing the highest quality and most effective products in the hemp CBD marketplace. Our focus is to help people improve their lives by providing a product that maximizes the potential health benefits hemp CBD has to offer."
Mr. Patel continued "We have been searching for a partner with the capabilities to produce our CBD formulation that will provide the same premium experience the BIDI® Stick affords adult consumers - one that provides the right balance of bio-availability and satisfaction. We are excited to announce we have identified a launch partner that we believe meets the standards our customers are accustomed to and that new ones will come to appreciate. We are finalizing discussions with our new partner to not only produce our own internal Kaival Hemp product, but to create white label, wholesale solutions for other product manufacturers. To that end, we have sent our first LOI to provide our first white label solution for a new hemp product company. We are excited for both new and existing adult consumers 21 and older to experience the same class-leading quality that they have become accustomed to with our BIDI® Stick offering, which is the number one ENDS product in the U.S. market. Our agenda has not changed. Our goal is to continue to develop and market alternatives for current adult users of combustible tobacco looking to transition away from legacy tobacco products. Our new Hemp product line represents another avenue in fulfilling our mission."
All of the contemplated CBD products will be produced and distributed strictly in compliance under the 2018 Farm Bill which defines hemp as the plant Cannabis sativa and any part of the plant with a delta-9 THC concentration of not more than 0.3 percent by dry weight. According to the Farm Bill, hemp-derived products can be offered for retail sale in the many forms: smoke, pouch, tinctures, topicals, capsules, vape oil and gummies/edibles. The Company plans to utilize its best-in-class, patented BIDI® Stick delivery mechanism in order to provide a similar, premium experience in the initial CBD product line. The Company expects its industrial-grade hemp CBD formula to provide greater bio-availability than many market peers, resulting in a better consumer experience in less usage.
A report from "Global Market Insights" indicates the global marketplace for CBD products reached $7B in 2020 and projects the market to grow at a 35.7% CAGR through 2027, expected to reach $108.8B in CBD-related sales. Specifically, the total addressable CBD Vape market is estimated to reach $28B by 2027, as according to "Data Bridge Market Research". To provide further context, a recent report from "Facts & Figures" anticipates that the global nicotine vape pen market will reach $45B by 2026.
"We believe our product extension into Hemp CBD is a natural step and has the potential to substantially increase our addressable audience while utilizing our existing, premium product infrastructure and superior compliance expertise and methodology. By leveraging our existing distribution network, Kaival Brands plans to ensure our ability to quickly gain market share within this new and dynamic category," said Mr. Patel."
Mr. Patel, the Company's President and Chief Executive Officer, owns and controls Bidi Vapor. As a result, Bidi Vapor and the Company are considered under common control and Bidi Vapor is considered a related party.
ABOUT BIDI VAPOR
Based in Melbourne, Florida, Bidi Vapor maintains a commitment to responsible marketing, supporting age-verification standards and sustainability through its BIDI® Cares recycling program. The Company's premiere device, the BIDI® Stick, is a premium product made with medical-grade components, a UL-certified battery, and technology designed to deliver a consistent vaping experience for adults 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 our 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 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 is the exclusive global distributor of all products manufactured by Bidi Vapor.
Learn more about Kaival Brands Innovations Group, Inc., at www.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 approval of our application for listing on the Nasdaq Capital Market; 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; 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 distributor or sub-distributors; our ability to successfully develop and commercialize our proposed CBD hemp products; 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.
SOURCE Kaival Brands
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