Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 151

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1A
Chunk 151
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Our business and an investment
in our company is speculative and subject to significant risks. We caution you that the following important factors, among
others, could cause our actual results to differ materially from those expressed in forward-looking statements made by us or on our behalf
in filings with the SEC, press releases, communications with investors and oral statements. Any or all of our forward-looking statements
contained in this Report and in any other public statements we make may turn out to be wrong. They can be affected by inaccurate assumptions
we might make or by known or unknown risks and uncertainties. Many factors mentioned in the discussion below will be important in determining
future results. Consequently, no forward-looking statement can be guaranteed. Actual future results may differ materially from those anticipated
in forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information,
future events or otherwise. You are advised, however, to consult any further disclosure we make in our reports filed with the SEC.

16

Risks Related to the Business Combination

Completion of the Business Combination
is subject to a number of conditions and if these conditions are not satisfied or waived, such transactions will not be completed.

Kaival’s obligation
and the obligation of Delta to complete the Business Combination are subject to satisfaction or waiver of a number of conditions, including,
among others:

●        approval
of the Business Combination by Kaival’s stockholders;

●        absence
of injunctions or certain legal impediments;

●        approval
for the listing on NASDAQ of Pubco’s ordinary shares to be issued in the Business Combination; and

●        accuracy
of the representations and warranties of each of the parties, subject to certain materiality thresholds.

There can be no assurance
that the conditions to closing set forth in the Merger Agreement will be satisfied or waived or that the Business Combination itself will
be completed.

Failure to complete the Business Combination
could negatively impact Kaival’s stock price, future business or operations.

If the Business Combination
is not completed, Kaival may be subject to a number of material risks, including the following:

●        Kaival
may be required under certain circumstances to pay Delta a termination fee;

●        the
price of Kaival’s common stock may decline to the extent that the relevant current market price reflects a market assumption that
the Business Combination will be completed; and

●        costs
related to the Business Combination, such as legal, accounting, certain