Company: KAVL
Filing Date: 2025-08-04
Form Type: S-3/A
Source: 0001731122-25-001067
Chunk: 8

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-04
Form: S-3/A
Chunk 8
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, we have not imported any Bidi Sticks and currently do not generate any revenue from
the sale of Bidi Sticks. Our current primary source of revenue is through an international licensing agreement with Philip Morris Products
S.A. (“PMPSA”), a wholly owned affiliate of Philip Morris International Inc. (“PMI”). See “Philip Morris Deed of Licensing Agreement”below.

On September 23, 2024, we entered into a Merger and Share Exchange Agreement (the “Merger Agreement”) with Delta Corp Holdings Limited, a company incorporated in England and Wales (together with its successors and assigns, “Delta”), Delta Corp Holdings Limited, a Cayman Islands exempted company (“Pubco”), KAVL Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Pubco (“Merger Sub”)and Delta Corp Cayman Limited.(the “Sellers”) If the Merger Agreement is consummated, Pubco will become our parent and all new officers and directors will be appointed by Pubco, except that pursuant to the Merger Agreement we have the right to appoint one director to the Pubco board of directors and we have agreed to appoint any family member of Ankitaben Patel (the widow of our former CEO, Nirajkumar Patel) and/or Nirajkumar Patel who is qualified and identified by Bidi for this role prior to the closing of the Merger Agreement. Pursuant to the terms of the Merger Agreement, the outside date for the closing the transactions contemplated by the Merger Agreement is February 15, 2025 and therefore under the Merger Agreement, the parties thereto have specified rights to terminate the Merger Agreement. No assurances can be made that the transactions contemplated by the Merger Agreement will ever close. The transactions contemplated by the Merger Agreement are described in further detail in our Current Report on Form 8-K filed with the SEC on September 27, 2024, which is incorporated by reference into our Annual Report on Form 10-K, filed with the SEC on February 10, 2025, which is incorporated by reference in to this prospectus. Although the outside date of the Merger Agreement has occurred, the Company and Delta continue to negotiate a closing of the transaction, however , there are no assurances that a closing of the transactions contemplated by the Merger Agreement will ever occur.

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Business Strategy

If and when the business combination
contemplated by the Merger Agreement is consum