Kaival Brands Innovations Group, Inc. | NASDAQ: KAVL
Kaival Brands Innovations Group, Inc.
Kaival Brands Innovations Group, Inc. operates as a blank check company. The company aims to acquire businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization.
Kaival Brands is composed of EXPERTS in business management, information technology, high-end product manufacturing and development, and sales & marketing via all channels and trade
We cannot discuss the details of a reverse split because at this stage, we have only advised stockholders that we may move forward with this option in the near term, but have not made any definitive decisions at this point. But in the event we move forward with the option, we expect that a reverse split would still leave a significant number of shares outstanding.
Regarding additional share offerings, Kaival Brands has not engaged in a single stock offering or issuance for capital raising purposes. While we do not comment on potential capital raising activities, we do note that one of the benefits of a Nasdaq listing for any company is that an exchange-listed company may have more access to capital markets than a non-listed company.
In the beginning of 2021 Kaival Brands’ shares were trading around $0.40. While market prices can move for various reasons, we note that the price began to rise earlier this year as we continued to publicly disclose information regarding our business and results, enabling investors to develop a better understanding of our company.
The benefits from being listed on the Nasdaq are significant and would represent a significant positive step forward for the company, a turning point in our development.
One of the most significant potential benefits of being listed on the Nasdaq is that it could significantly boost the available audience of potential investors as many institutional investors have investment parameters that prohibit them from owning OTC stocks.
With an uplisting to the Nasdaq, Kaival Brands’ shares would potentially qualify to be purchased by many institutions – mutual funds, hedge funds, pension funds, etc. – that may not be able to invest while we are quoted on the OTC. Furthermore, a Nasdaq listing can provide enhanced liquidity and more orderly trading markets.
We view a transition to the Nasdaq as an extremely positive event for stockholders as it has the potential to: (1) significantly expand the potential audience of investors (most institutional investors are prohibited from buy OTC stocks); (2) increase investor awareness of Kaival Brands; (3) provide more efficient and deeper markets for the shares; (4) create potential for institutional advocates; and (5) provide avenues for capital raising to expand internationally.
We are not providing guidance for 2022, though we note that we did previously announce that guidance will be discussed in August.
That being said we continue to make great strides with new distribution partners and have gained authorization enter certain international markets. We continue to navigate through the swarms of black market and counterfeit products continuously available.
We would be remiss if we failed to mention the significant job the FDA is doing to protect consumers from “bad actors” through the Premarket Tobacco Product Application process and Youth Prevention strategies. We also believe that the recent extension of the Prevent All Cigarette Trafficking (PACT) Act to cover vaping products is a very positive step in the right direction.
Yes, all shares, restricted or unrestricted, granted prior to the reverse split are also subject to a reverse split if it is indeed enacted.
The Company is very excited about our new product, the BIDI® Pouch. The pouch market is a very significant opportunity in the U.S. alone. Many of our current distributors have already begun to carry the BIDI® Pouch.
Yes, we are able to market and distribute product now in Australia and New Zealand, but we are also eligible to market and distribute the product in the U.K., Spain, France, Italy, Germany, The Netherlands, Austria, Russia. and the Czech Republic. We are very excited about our international opportunities.
While there is no timetable for FDA review, we are working with the Agency and continue to provide them with scientific information as they review our PMTAs.
Any shares of Kaival Brands’ common stock that have been issued since March 2020 have been restricted shares. These restricted shares have been issued to certain of our employees as well as outside consultants, and advisors for services rendered.
There are no current plans to change the relationship between Bidi Vapor and Kaival Brands. Any change in the future to the current relationship between Bidi Vapor and Kaival Brands would be disclosed to our stockholders at the appropriate time, and as required by SEC rules and regulations.
No decision has been made at this time to effect a reverse split. The act of filing the Information Statement with the SEC, which informed our stockholders of the possibility of a reverse stock split in the future, ensured that we would have that option should our board of directors deem it advisable. Further, while we are confident in our company and our future, we can not speculate on stock prices or how the market might react to future news.
Our 2021 revenue guidance includes an assumption of a slight contribution from non-U.S. sales. Kaival Brands has received authorization to sell and market the product in: the United Kingdom, New Zealand, Australia, Spain, Italy, France, Czech Republic and Russia. In late March, we indicated that we believe our first “non-U.S.” sales will occur within the next 6 months.