What’s going on with Kaival Brands (NASDAQ:KAVL) today? Shares of KAVL stock are up by over 40%, at the time of writing, to the delight of investors. Even better, shares are higher by more than 130% over the past five trading days. Kaival operates as a development stage company that seeks to invest in “eco-friendly companies with quality assurance and testing using innovative technologies.” The company is the exclusive global distributor of Bidi Vapor, a disposable e-cigarette company. So, why are shares of KAVL stock up so much?
A major catalyst propelling Kaival higher is based on the U.S. Court of Appeals for the Eleventh Circuit granting Bidi Vapor a judicial stay. The stay was granted after the U.S. Food and Drug Administration (FDA) issued a marketing denial order (MDO) to Bidi Vapor last September. In addition, the stay will allow the vape company to market and sell all of its Bidi Stick electronic nicotine delivery system (ENDS) products. Meanwhile, Bidi Vapor will continue to work on FDA approval and scientific review for its premarket tobacco product application (PMTA).
Kaival and Bidi Vapor CEO Niraj Patel, commented on the news:
“We expect this judicial stay will result in a rebounding of BIDI Stick sales. Many wholesale and retail partners had discontinued or slowed purchases of the BIDI® Stick, until we heard back from the courts on the likelihood of our merits case succeeding. This is what our wholesale and retail partners have been waiting for.”
As investors digest this good news, let’s take a look at what else they should know about KAVL stock.
KAVL Stock: 5 Things to Know as Shares Fly Higher
- In 2019, a Maryland federal court judge gave the FDA a deadline of one year to review all submitted PMTAs. The “random, logistically impossible” deadline occurred last September, forcing the FDA to issue an MDO to Bidi Vapor.
- However, Bidi was able to submit 11 PMTAs prior to the deadline. Despite the detailed application being over 285,000 pages long, the FDA still issued Bidi an MDO.
- After receiving the MDO, Bidi filed a Petition for Review to the U.S. Court of Appeals for the Eleventh Circuit.
- Patel believes that the Bidi stick is a viable replacement for adults who use combustible cigarettes. Bidi Vapor released a study last year detailing Patel’s claim.
- Based on the most recent data, KAVL stock has a short interest of 4.41% of float.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.