Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 30

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 30
---
, 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 financial advisory and financial printing fees, must be paid even
if the Business Combination is not completed.

Further, if the Business Combination
is terminated and either company’s board of directors determines to seek another merger or business combination, there can be no
assurance that it will be able to find a partner on terms as attractive as those provided for in the Merger Agreement. In addition, while
the Merger Agreement is in effect and subject to very narrowly defined exceptions, Kaival is prohibited from soliciting, initiating or
encouraging or entering into certain extraordinary transactions, such as a merger, sale of assets or other business combination, other
than with Delta