Kaival Brands Innovations Group Inc (KAVL)

[daiello]

Not sure if anyone here caught this before or if I didn't even realize it, but in the April 13th PR/8K about signing up the second Non-Exclusive Sub-Distribution Agreement with Colonial Wholesale Distributing, Inc it states:

The terms of the Agreement are substantially similar to the terms of the sub-distribution agreement between the Company and Favs Business, LLC, a Georgia limited liability company, including the terms related to minimum purchase requirements and termination rights.
https://www.otcmarkets.com/filing/html?id=14069563&guid=RXX6UasTiMwfTyh

A quick reminder for what that means for us...

Favs fails to satisfy its minimum purchase obligations as follows: (y) purchase of not less than 500,000 units of Products from the Company on or before April 30, 2020, and (z) purchase of not less than 1,000,000 units of Products from the Company during each subsequent fiscal quarter during the balance of the term of the Sub-Distribution Agreement.
https://www.otcmarkets.com/filing/html?id=14058947&guid=RXX6UasTiMwfTyh

This tells me Colonial will be as big if not bigger than FAVS, who did 8M of revenue in pretty much 3-4 weeks in April. If both do the same, that could be $50Million total per quarter just from 2 distributors. It also makes me wonder, how much they sell a "unit" for. Does that mean 1 vape pen, or is a unit a case of 25-50 pens.