Kaival Brands Innovations Group, Inc. announced it has reached a three-year extension agreement with QuikfillRx, LLC for executing Kaival Brands' marketing and sales strategies. As part of the agreement, QuikfillRx, LLC will be rebranded as Kaival Marketing Services (“KMS”) to more properly reflect the commitment of KMS to the success of Kaival Brands. The three-year extension with KMS was executed in preparation to support the anticipated improved sales volumes arising from this decision and the increase of BIDI® Stick sales and marketing activities.

In addition to monthly cash payments, which will be lower than during the initial term of the agreement, and a one-time upfront vested common stock option award, KMS will be eligible to receive performance-based common stock option awards from Kaival Brands that can vest annually based on total net revenues and profit margins achieved by Kaival Brands from KMS's efforts over the term of the agreement, with a maximum vesting to occur upon achievement of $180,000,000 in total net revenues reported within the 3-year term. Additional information regarding the marketing and sales agreement between Kaival Brands and KMS will be provided in a Form 8-K to be filed by Kaival Brands with the Securities and Exchange Commission.