Kaival Brands Innovations Group, Inc. (OTCQB KAVL) Acquires U.S. Patent and International Patent Applications to Produce Nicotine Cessation Products
GRANT, FL, Sept. 28, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Kaival Brands Innovations Group, Inc. (OTCQB: KAVL) (“Kaival Brands,” the “Company,” or “we”), a company focused on growing and incubating innovative and profitable products into mature, dominant brands, is proud to announce its entry into a Patent Contribution Agreement (the “Agreement”), in which the Company will acquire exclusive rights to an international patent portfolio concerning full customization of certain isomeric properties of synthetic nicotine. Kaival Brands is also pleased to announce the formation of a new wholly-owned subsidiary, Kaival Labs, Inc., a Delaware corporation (“Kaival Labs”), that will own and develop the patent.
The U.S. patent and international patent applications protect the utilization and creation of controlled preparations of synthetic nicotine that are greater than 99.5% pure with specific ratios of (R, S, and R-S)-isomers for cessation purposes. As such, the product will meet the purity requirements described for nicotine in the United States of America’s USP monograph.
Niraj Patel, CEO of Kaival Brands, sees incredible potential with the nicotine cessation patents and stated, "The science behind these patents has discovered that within the nicotine molecule the S-isomers control the addictive properties, whereas the R-isomers control the beneficial qualities of the nicotine that a user enjoys. The exclusivity is that the patents allow us to control the specific ratios of each isomer in the final synthetic nicotine molecule we produce for cessation products. We can now create completely unique products for smoking cessation and nicotine addiction therapy that remain effective and satisfying for the user, but are free from nicotine’s addictive traits.”
“Pursuant to the Agreement, Kaival Labs will own the patented science to create a pure, yet non-addictive synthetic nicotine for the development and production of smoking cessation and nicotine replacement therapy products. Tobacco-Free Nicotine (TFN) is a certified clean, pure, non-tobacco-derived synthetic nicotine, and a key ingredient in numerous products like nicotine patches, lozenges, gums, e-cigarettes, e-liquids and more,” Patel added.
Kaival Brands will acquire the patent and international patent applications for a total purchase price of $3 million from Next Generation Labs, LLC, (“NGL”) the only specialized manufacturer of the patented TFN brand synthetic nicotine in the United States. NGL is to be paid upon two events: (i) a portion of the purchase price will be paid upon the completion of the Company’s future public offering of its common stock; and (ii) the remaining portion of the purchase price will be paid upon the successful creation of any commercialized product utilizing the patents.