Kaival Brands (NASDAQ: KAVL) stock price rose significantly this morning, extending its already impressive premarket gains of over 20%, to a current gain of 40% – picking up some extra strength as the market moved into its early hours of trading.
Without any specific news today, some are left scratching their heads as to why the sudden surge – are we missing something?
The reality is, as any long-term investor will tell you, Kaival Brands has a profile that is drawing attention. With expansion on the horizon and a recent, potentially game-changing FDA approval in the mixer, Kaival Brands is looking strong.
The main contributor here is Bidi Vapor, a company that manufactures e-cigarettes, to which Kaival owns the exclusive distributions rights. Kaival announced earlier this month that they were planning on expanding their market reach to the UK, following the FDA’s denial of flavored ENDS.
In a move to maintain stakeholder and investor support, Kaival is focusing primarily on international markets where restrictions are not as prevalent – allowing full exposure and marketing potential for the entire Bidi product portfolio.
So far, their plans for global reach seem to be falling into place – achieving distribution approval in 11 global markets including UK and Russia – each with a sizeable, targetable e-cigarette demographic.
Within the last week, the FDA has approved the use of Vuse vaping products. Again, this is a change that investors will be happy to see; while Kaival and Bidi are still ironing out flavoring details, it’s a positive step for the US e-cigarette market – and perhaps a key influencer in today’s price surge.
The Kaival stock price is continuing to soar, now sitting comfortably on gains of over 50%, with price edging towards the $2.50 level. If Bidi successfully secures their place in the global e-cigarette market in the months to follow, we could see a lot more long-term growth. However there are still obstacles in the way, and as it has been so far, it won’t be an easy journey.
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