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The electric nicotine device system (ENDS) is one of the industries which could eventually be worth in billions as more and more smokers switch to such devices.

However, at the same time, it should be noted that it is a heavily regulated industry and following a recent development from the regulatory authorities, there are only a few companies that are still in operation. One of those companies is Kaival Brands International (NASDAQ: KAVL). Although there has been significant volatility in the stock over the course of the month so far, it should not be forgotten that it is one of the few companies which is a major player in the rapidly growing sector.

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The company managed to get a stay order from a United States District Court that allowed it to continue to market certain ENDS products in the United States. It was a proverbial shot in the arm for the company which is mainly involved in the marketing of ENDS products made by Bidi Vapor. However, that was not the end of the favorable developments for the company. It, later on, emerged that the United States Food and Drugs Administration had also allowed the entry of the Classic BIDI Stick into the final phase III of the important scientific review.

If everything goes in the right direction for Kaival Brands then it could help the company in operating smoothly in the potentially multibillion-dollar ENDS industry in the United States. The payoff in the long term could be huge for the company and that could be one of the reasons why it may be a company worth watching very closely. Hence, it could be said that the current levels of the Kaival Brands stock could in fact be a bargain for investors who are looking into the possibility of investing in companies with the potential to grow in the long term.

KAVL also announced a business partnership with tobacco industry behemoth Philip Morris (NYSE: PM), leveraging into KAVL’s market position to launch its custom-branded self-contained e-vapor product, VEEBA, which PM intends to market in Canada. Of course, Philip Morris S.A. isn’t the only winner. For its part, KAVL will earn royalties from the international licensing agreement, and with PM able to penetrate markets quickly, those royalties could, and likely will, be significant.