Kaival Brands Reports Fiscal 2023 Second Quarter Financial Results and Highlights Recent Achievements

New broker and distribution agreements as well as FDA enforcement efforts against non-compliant ENDS products creates opportunities for Kaival Brands to open larger customer accounts for its core BIDI Stick distribution business

Transformative intellectual property acquisition brings promise for the future

New independent board members beginning to bring value to the company

GRANT-VALKARIA, Fla., June 14, 2023 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the "Company" or "we,” “our” or similar terms), the exclusive distributor of all products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), including the BIDI Stick electronic nicotine delivery system (ENDS), which are intended for adults 21 and over, today announced its financial results for the fiscal 2023 second quarter ended April 30, 2023 and highlighted its recent corporate achievements.

Recent Achievements During and Subsequent to the Fiscal Second Quarter 2023

• During the second quarter ended April 2023, Kaival Brands worked diligently to secure new and large retail customer accounts for its core BIDI Stick distribution business. These larger accounts take time and effort to open, but once secured, should lead to increasing orders for BIDI Stick.
  
  
• During the quarter, the Company announced important new broker and distribution agreements to broaden its BIDI Stick reach to larger potential retail customers.
  
  
• While actual sales results for the quarter were slightly down versus the prior year quarter due certain credits, discounts and rebates issued to customers, the Company believes that continued U.S. Food and Drug Administration (FDA) enforcement of non-compliant ENDS products has allowed the Company to position BIDI Stick as a compliant alternative subject to FDA enforcement discretion. The Company believes this should also help in securing new orders for BIDI Stick.
  
  
• In furtherance of this strategy, on June 14, 2023, the Company announced it had relaunched distribution of the BIDI Stick in over 1,000 Circle K locations. Initial product has shipped and ramp-up to 5,000 stores is underway in all South Atlantic and Midwest region locations. It is this type of sales activity that the Company expects to repeat in the second half of its fiscal 2023 and beyond.
  
  
• On March 13, 2023, the Company announced the official launch of the VEEBA disposable e-vapor product across the United Kingdom. VEEBA is being distributed by Philip Morris Products S.A., a subsidiary of Philip Morris International, under a licensing agreement with a subsidiary of Kaival Brands allowing Philip Morris to utilize the patents, methods and technology exclusively licensed to Kaival Brands by Bidi Vapor to develop products based on BIDI Stick. The Company expects to generate royalties under this license agreement in future periods.