The subsidiary of Kaival Brands Innovations Group has recently announced that it has amended its agreement with an affiliate of Philip Morris International, the well-known tobacco giant.
Kaival Brands International, the company’s subsidiary that specializes in the sale of electronic cigarettes, has revised its agreement with Philip Morris Products. The amendment focuses on the development and distribution of e-cigarettes in markets outside of the United States.
The revised agreement includes several key changes. One notable change is the implementation of a fixed pricing structure with volume-driven increases. Additionally, Kaival Brands International will regain the non-recurring engineering costs as part of the amended agreement.
As a result of these revisions, Kaival Brands Innovations anticipates a reconciliation payment of approximately $135,000. Furthermore, it projects earning around $300,000 in additional royalties by the end of 2023.
Eric Mosser, CEO of Kaival Brands Innovations, expressed excitement about the revised agreement. He emphasized that the simplified payment structure will lead to significant cost savings for the company. In fact, it is estimated that the agreement will save Kaival Brands Innovations approximately $2.7 million over the duration of the license agreement.
