Company: KAVL
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001731122-25-000319
Chunk: 9

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 9
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 Split ratio to implement, Kaival’s board of directors may consider, among other things, various
factors, such as:

| ● | the historical trading price and trading volume of Kaival Common Stock;                                                                                                                             |
| ● | the then-prevailing trading price and trading volume of Kaival Common Stock and the expected impact of the Reverse Split on the trading market for Kaival Common Stock in the short- and long-term; |
| ● | Pubco’s ability to obtain or continue its listing on The Nasdaq Capital Market;                                                                                                                     |
| ● | the conditions to closing and covenants in the Merger Agreement;                                                                                                                                    |
| ● | which Reverse Split ratio would result in the least administrative cost to Kaival;                                                                                                                  |
| ● | prevailing general market and economic conditions; and                                                                                                                                              |
| ● | if Kaival stockholders approve the Reverse Split, the implementation of a Reverse Split may provide greater flexibility to use Kaival Common Stock for business and/or financial purposes.          |

Certain Risks and Potential Disadvantages Associated with Reverse Split

Kaival cannot assure you that the
proposed Reverse Split will increase its stock price and have the desired effect of facilitating Pubco’s compliance with Nasdaq
Listing Rules. Kaival expects that the Reverse Split will increase the market price of Kaival Common Stock in connection with Nasdaq’s
minimum price requirement for listing of Pubco Ordinary Shares at or following the Merger. However, the effect of the Reverse Split upon
the market price of Kaival Common Stock cannot be predicted with any certainty, and the history of similar Reverse Splits for companies
in like circumstances is varied, particularly since some investors may view a reverse stock split negatively. It is possible that the
per share price of Kaival Common Stock after the Reverse Split will not rise in proportion to the reduction in the number of shares of
Kaival Common Stock outstanding resulting from the Reverse Split, and the market price per post-Reverse Split share may not exceed or
remain in excess of the minimum price for the requisite listing criteria. Even if Kaival implements the Reverse Split, the market price
of Kaival Common Stock may decrease due to factors unrelated to the Reverse Split. In any case, the market price of Kaival Common Stock
may also be based on other factors which may be unrelated to the number of shares outstanding, including the combined company’s
future performance. If the Reverse Split is consummated and the trading price of the common stock declines, the percentage decline as
an