Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 33

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 33
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The current shareholders of Delta (the “Delta
Shareholders”) and the Kaival stockholders are expected to own, immediately following consummation of the Business Combination,
approximately 90% (inclusive of shares to be distributed to advisors) and 10% of Holdings, respectively.

Prior to the Closing, there has not been and will
not be an established public trading market for Pubco Ordinary Shares. The market value of Pubco Ordinary Shares will reflect the combination
of Kaival and Delta under the terms of the Business Combination. Further, the merger consideration to be received by Kaival stockholders
will not be adjusted to reflect any changes in the number of shares of Kaival common stock outstanding, the market value of Kaival common
stock or currency exchange rates.

18

Changes in the price of our common stock may result
from a variety of factors, including, among others, changes in our business, operations or prospects, regulatory considerations, governmental
actions, legal proceedings and general business, market, industry, political or economic conditions. Many of these factors are beyond
our control. As a result, the aggregate market value of the Pubco Ordinary Shares that a Kaival stockholder is entitled to receive at
the Closing could vary significantly from the value of the equivalent shares of our common stock on the date of the Merger Agreement,
the date of this report or at other times, and Kaival stockholders will neither know nor be able to calculate the value of the merger
consideration they would receive upon the Closing. Kaival stockholders are urged to obtain current market quotations for our common stock.

Termination of the
Merger Agreement could negatively impact Kaival.

If the Business Combination is not completed for any
reason, including as a result of Kaival stockholders declining to adopt the Merger Agreement or declining to approve the proposals required
to effect the Business Combination, the ongoing business of Kaival may be adversely impacted and, without realizing any of the anticipated
benefits of completing the Business Combination, Kaival would be subject to a number of risks, including the following:

    ●
    we
    may experience negative reactions from the financial markets, including negative impacts on our stock price (including to the extent
    that the current market price reflects a market assumption that the Business Combination will be completed);

    ●
    we
    will have incurred substantial expenses and will be required to pay certain costs relating to the Business Combination, whether or
    not the Business Combination is completed; and

    ●