Kaival Brands Innovations Group, Inc. (KAVL), a blank check company, has surged 20.50% in the premarket trading session. Consequently, KAVL stock was trading at $1.94. In the regular trading hours of Monday, KAVL stock surged 18.38% and closed the day at $1.61. The increase has come after the FDA approved Vuse e-cigarettes, which is its first vape authorization. Complete details are not out yet, so let’s discuss some recent developments related to KAVL.
KAVL plans of launching in the UK
On 5th October, KAVL announced its plans to launch the distribution of its products in the UK. The company said that it intends to shift its focus to international markets. At the time, the flavoured ENDS faced hurdles to get back on the US market. That was due to denial of marketing authorization by the US FDA. Being an exclusive global partner of products manufactured by Bidi Vapor, LLC, the company had received marketing and distribution approval in 11 markets throughout the world. With the favourable market dynamics in the UK, the company said that it had focused its substantial time and efforts toward targeting consumers in the UK. The company said that it believes that it has the budget for marketing, staffing, and executing its business plans successfully in the UK. Kaival Brand’s Founder & CEO, Niraj Patel, said that the company intends to have a strong first year in the UK and recapture the leading market share in ENDS in the US.
Q3 2021 financial results
On 14th September, KAVL reported the financial results for the third quarter of the fiscal year 2021 which ended on 31st July 2021. The company had cash and cash equivalents of $938,435 million on 31st July. The total assets in possession of the company were $23.89 million, while total liabilities were $17.52 million. The company generated total revenue of $3.44 million in the quarter against $32.37 million in the same period of 2020. The total cost of revenue for the period was $3.52 million against $27.97 million for the same period of 2020. The gross loss for the period was $84.29 million against the gross profit of $4.39 million for the same period of 2020. The total operating expenses for the period were $3.53 million against $1.47 million for the same period of 2020. The net loss for the three month period was $3.43 million (or the basic and diluted loss per share of $0.15) against the net income of $2.60 million (or the basic and diluted income per share of $0.05) for the same period of 2020.
What’s ahead for KAVL?
The recent step of FDA approval of e-cigarettes is a major success for the business of KAVL. Potential investors should keep a close eye on the developments related to the matter in near future. That could aid them in making an informed decision regarding their investment.
