Over the past months, Kaival Brands Innovations Group Inc. (NAS: KAVL) has been best known for being the exclusive distributor of products manufactured by Bidi Vapor LLC in the United States.
KAVL stock surged 7.30% in yesterday’s trading session on a massive volume of 742K shares, 5X its average volume.
On Thursday, the company was in prime focus after it provided an update with regards to the sales activities and the royalty payments, which originated thanks to its association with Phillip Morris International Inc. (NYSE: PM). The tobacco behemoth’s affiliate holds the license to market Bidi Vapor-based products from Kaival Brands Innovations Group in a number of global markets. The company announced that in July 2023, Phillip Morris had managed to generate record monthly sales for its products.
The President and Chief Executive Officer of the company, Eric Mosser, spoke about the development as well. He noted that everyone at the company was highly excited about the positive direction of the royalties and sales through the international markets.
He went on to note that the company was proud to have tied up with Phillip Morris. Mosser also stated that the two companies remained committed to the commercialization of better cigarette alternatives in a responsible manner. The company announced its financial results for the third fiscal quarter ended July 31, 2023, on September 20.
The company revealed that on September 8, it had received a net recollection payment to the tune of around $135,000 from Phillip Morris International. The sum also reflected the amended terms and conditions that had been signed not too long ago.
Additionally, Kaival Brands Innovations Group also managed to earn as much as $121,000 in the form of royalty payments for the period starting on July 1, 2023, through to July 31, 2023. During the quarter, the company also promoted Mosser to the position of Chief Executive Officer and appointed a new Chief Financial Officer in the form of Thomas J. Metzler.