Company: KAVL
Filing Date: 2025-08-04
Form Type: S-3/A
Source: 0001731122-25-001067
Chunk: 30

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-04
Form: S-3/A
Chunk 30
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 incorporation, as amended, including the certificate of designations
relating to such series of preferred stock, and our by-laws.

As of [*], we had 5,000,000 authorized shares
of preferred stock out of which 3,000,000 are Series A Convertible Preferred Stock and 900,000 are Series B Convertible Preferred Stock.
We currently do not have any shares of Series A Convertible Preferred Stock outstanding.

We issued 900,000 shares of the Series B Preferred
Stock as consideration for the acquisition of intellectual property assets from GoFire in May 2023. The Series B Preferred Stock carries
no voting rights except: (i) with respect to the ability of the holders of a majority of the then outstanding Series B Preferred Stock
(the “Majority Holders”), to nominate a director to our board of directors, and (ii) that the vote of the Majority Holders
is necessary for effecting any amendment to the Company’s Certificate of Incorporation or Certificate of Designation that affects
the Series B Preferred Stock. The Series B Preferred Stock is redeemable at our option at a redemption price of $15 per share, subject
to potential downward adjustments based on the trading price of the Common Stock. Subject to additional limitations in the GoFire APA,
the Series B Preferred Stock holds seniority over the Common Stock and each other class of series of securities now existing or hereafter
authorized with respect to dividend rights, the distribution of assets upon liquidation, and dissolution and redemption rights. Upon a
liquidation and winding up of our company, the holders of Series B Preferred Stock are entitled to a liquidation preference of $15 per
share (the “Liquidation Preference”),

<div align='center'>15</div>

though the redemption may be adjusted downward based on the trading price of the Common
Stock at the time of liquidation. The holders of Series B Preferred Stock are entitled to receive a dividend equal to 2% of the Liquidation
Preference, accruing from May 30, 2023 and payable on the eighteen-month anniversary of May 30, 2023. Dividends compound on each six month
anniversary of the original issuance date. No preemptive rights are granted to the holders of Series B Preferred Stock. The Majority Holders
have the ability to cause a voluntary conversion of the Series B Preferred Stock into Common Stock at a conversion rate of 0.3968 shares
of Common Stock per share of Series B Preferred Stock which may