Kaival and Bidi Vapor Continue Cooperation

    Kaival Brands approved an amended and restated distribution agreement, which sets forth the terms of the formal relationship between Kaival Brands and Bidi Vapor. The newly amended and restated distribution agreement extends the previous one-year, annually renewable term to an initial term of 10 years, which automatically renews for another five-year term provided that Kaival Brands satisfies certain minimum purchase thresholds.

    The newly amended and restated distribution agreement also provides Kaival Brands with a right of first refusal in the event Bidi Vapor receives an offer that would constitute a “change of control transaction” as well as a right of first refusal to act as the exclusive distributor of any and all future products of Bidi Vapor that arise out of or related to electronic nicotine-delivery systems (ENDS) and components related to ENDS, arise out of or relate to the synthetic nicotine industry, or arise out of or related to the tobacco-derived nicotine industry.

    “We believe the amendments to the distribution agreement further bolsters the commitment between the two companies,” said Niraj Patel, president, CEO and chief financial officer, in a statement. “The relationship between Kaival Brands and Bidi Vapor during the past 12 months has been fruitful, with Kaival Brands generating approximately $100 million in revenues during the previous 12 months from the sale of the Bidi Stick and expanding its distribution of the Bidi Stick to more than 50,000 stores.”