Company: KAVL
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001731122-25-000319
Chunk: 11

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 11
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Based upon the Reverse Stock Split ratio determined
by the Board, proportionate adjustments are generally required to be made to the per share exercise price and the number of shares issuable
upon the exercise or conversion of all outstanding options, warrants, convertible or exchangeable securities entitling the holders to
purchase, exchange for, or convert into, shares of Common Stock. This would result in approximately the same aggregate price being required
to be paid under such options, warrants, convertible or exchangeable securities upon exercise, and approximately the same value of shares
of Common Stock being delivered upon such exercise, exchange or conversion, immediately following the Reverse Stock Split as was the case
immediately preceding the Reverse Stock Split. The number of shares deliverable upon settlement or vesting of restricted stock awards
will be similarly adjusted, subject to our treatment of fractional shares. The number of shares reserved for issuance pursuant to these
securities will be proportionately based upon the Reverse Stock Split ratio determined by the Board, subject to our treatment of fractional
shares.
For example, upon the effectiveness of the Reverse Stock Split at a ratio of 1:20, a warrant holder that previously held a warrant to
purchase 100,000 shares of common stock at an exercise price of $0.10 per share, would hold a warrant to purchase 5,000 shares at an exercise
price of $2.00 per share. Similarly, a holder of convertible preferred stock that previously held a share of convertible preferred stock
that is convertible into 100,000 shares of common stock at a conversion price of $0.10 per share, would hold a note that is convertible
into 5,000 shares at a conversion price of $2.00 per share.

Our Common Stock is currently registered under Section
12(b) of the Exchange Act and, as a result, we are subject to periodic reporting and other requirements. The proposed Reverse Split would
not affect the registration of our Common Stock under the Exchange Act.

After the Effective Date of the Reverse Split, each
stockholder would own a reduced number of shares of our Common Stock, based upon the ratio of the reverse, which will be subject to the
determination of our Board of Directors. However, a Reverse Split would affect all stockholders equally and will not affect any stockholder’s
percentage ownership of the Company, except for the immaterial result that the Reverse Split shall involve in the rounding up of any fractional
shares up to the next whole in such a manner that every stock