Kaival Brands Innovations Group Inc (KAVL)

[daiello]

Summary for any new comers.

#1
Today (9/8/2020) Bidi Vapor (Manufacturer of KAVL's main distribution product) filed their PMTA which per the link below means that they'll be able to sell product for AT LEAST the next year, seemingly regardless of approval/rejection.

https://www.convenience.org/Media/Daily/2020/Sept/2/1-FDA-Announces-Decision-Publish-ENDS_Operations

#2
Per the bottom of the PR, KAVL may have hired a firm to increase awareness for the company.

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[e-mail]

https://www.otcmarkets.com/stock/KAVL/news/Kaival-Brands-Innovations-Group-Inc-OTC-KAVL-Announces-PMTA-Submission-by-Bidi-Vapor?id=273269

#3
First quarter in operation KAVL generated $22.5M in revenue. Based on timing of agreements and when the company commenced operations, it's possible a majority of that revenue was in 1 month. We also only had 3 main distributors at that point.

The next quarterly will be a full 3 months of operation, and instead of 3 distributors, we now have 8.

#4
We know the company is expanding outside of the US based on new website domains plus it was also highlighted in the O/S reduction PR; internationally into the European Union, New Zealand, Australia, and Canada.

https://www.otcmarkets.com/stock/KAVL/news/Kaival-Brands-Innovations-Group-Inc-OTC-KAVL-Announces-Cancellation-of-Shares-of-300000000Common-Stock?id=271587

#5
The company has been very shareholder friendly so far; moving the control block of 300M common shares to preferred and unable to convert back until 2023.

Their stock incentives aren't fully vested until 2023 and another incentive requires the company to generate $1B in revenue.

#6
Based on a 12.5% net profit margin (per the latest Q, and annualizing the potential revenue) with a 30x P/E multiple the below share prices are possible.

$50M of revenue per quarter = $2.70 per share
$75M of revenue per quarter = $4.05 per share
$100M of revenue per quarter = $5.41 per share.

That's based on a 30x multiple. If we continue to see growth/expansion, we could be double or triple that. So take the share prices above and double/triple them.

TLDR: KAVL IS WAY UNDERVALUED.