Company: KAVL
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001731122-25-000319
Chunk: 10

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 10
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 absolute number and as a percentage of Kaival’s overall market capitalization may be greater than would occur in the absence
of the Reverse Split. Even if the market price per post-Reverse Split share of Kaival Common Stock remains in excess of the minimum price,
Pubco may not be listed on Nasdaq due to a failure to meet other listing requirements, including Nasdaq requirements related to the minimum
stockholders’ equity requirement, the minimum number of shares that must be in the public float, the minimum market value of the
public float and the minimum number of “round lot” holders.

The proposed Reverse Split may
decrease the liquidity of Kaival Common Stock and result in higher transaction costs. The liquidity of Kaival Common Stock may be negatively
impacted by a Reverse Split, given the reduced number of shares that would be outstanding after the Reverse Split, particularly if the
stock price does not increase as a result of the Reverse Split. In addition, if a Reverse Split is implemented, it will increase the number
of Kaival stockholders who own “odd lots” of fewer than 100 shares of Kaival Common Stock. Brokerage commission and other
costs of transactions in odd lots are generally higher than the costs of transactions of more than 100 shares of common stock. Accordingly,
a Reverse Split may not achieve the desired results of increasing marketability and liquidity of Kaival Common Stock described above.

<div align='center'>7</div>

Effects of the Reverse Split

After the filing of the Definitive Information Statement
on Schedule 14C and the final determination by the Board of Directors of the ratio of the Reverse Split, which is expected to be any whole
number in the range of one-for-two (1:2) to one-for-twenty (1:20), the Company will file a Certificate of Amendment to our Certificate
of Incorporation with the State of Delaware in the form substantially similar to the form included as Exhibit A to this Information Statement
and submit a Corporate Event Notification Form to Nasdaq and take the appropriate actions in order to comply with Nasdaq Rule 5250(e)(7).

Except for the number of shares of Common Stock issued
and outstanding, the rights and preferences of shares of our Common Stock prior and subsequent to the Reverse Split would remain the same.
We do not anticipate that our financial condition, the percentage of our stock owned by management, the number of our stockholders, or
any aspect of our current business would materially change as a result of the Reverse Split