Company: KAVL
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001731122-25-000319
Chunk: 6

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 6
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holders should understand
that as of the date of the Definitive Information Statement, our Board of Directors has not determined the exact ratio of the Reverse
Split nor the date that the Reverse Split will be implemented.

The Company entered into a Merger and Share Exchange Agreement on September
23, 2024 with Delta Corp Holdings Limited, a company incorporated in England and Wales (“Delta”), shareholders of Delta,
including Delta Corp Cayman Limited, a company organized under the laws of the Cayman Islands, which is owned entirely beneficially by
Delta’s founder and chief executive officer, Mudit Paliwal and his related persons (the “Sellers”), Delta Corp
Holdings Limited, a Cayman Islands exempted company (“Pubco”), KAVL Merger Sub Inc., a Delaware corporation and wholly
owned subsidiary of Pubco (“Merger Sub”), and the other parties thereto (as amended from time to time, collectively,
the “Merger Agreement”). The Merger Agreement provides for the combination of the Company and Delta as wholly owned
subsidiaries of Pubco, a newly formed holding company, and pursuant to which (a) Pubco will acquire all of the issued and outstanding
capital shares of Delta from the Sellers in exchange for the issue by Pubco of ordinary shares in the capital of Pubco, such that Delta
will become a wholly owned subsidiary of Pubco and the Sellers become shareholders of Pubco (the “Share Exchange”);
and immediately thereafter (b) Merger Sub will merge with and into Kaival, with Kaival continuing as the surviving entity and wholly owned
subsidiary of Pubco (the “Merger”). We refer to the Share Exchange, the Merger and the other transactions contemplated
by the Merger Agreement as the “Business Combination.

The Board of Directors intends
to implement the Reverse Split with the primary intent of increasing the per share price of Common Stock for the following principal reasons:

| ● | to encourage increased investor interest in the Company’s Common Stock and promote greater liquidity for its stockholders through the Merger and resulting combined company’s listing on Nasdaq; |
| ● | to help attract, retain, and motivate employees; and                                                                                                                                             |
| ● | to facilitate the closing of the Merger and Business Combination.                                                                                                                                |

Investor Interest and Liquidity

In addition, in approving the proposed
Reverse Split, the Board of Directors considered that the Reverse Split and the resulting increase in the per share price of Common Stock
could encourage increased investor interest