Company: KAVL
Filing Date: 2025-07-11
Form Type: CORRESP
Source: 0001731122-25-000969
Chunk: 1

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-07-11
Form: CORRESP
Chunk 1
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 inclusion of pro forma financial statements of Pubco and/or Delta
for the following reasons:

| 1. | The Merger Agreement provides for the acquisition of the Company by Delta whereby upon the consummation                                        
 of the merger, the Company would be a wholly-owned subsidiary of Pubco. The Company does not believe Rule 3-05 of Regulation S-X or Section    
 3100 of the SEC Financial Reporting Manual require it to provide proforma financial information for the acquiring company (Pubco or Delta)     
 in its registration statements. Rule 3-05 of Regulation determines when financial statements are to be included in registration statements     
 when businesses acquired. Since the Company is not acquiring a business, Rule 3-05 does not require the Company to include pro forma financial 
 information in the Form S-3. Also, none of the provisions of Section 3100 of the SEC Financial Reporting Manual apply to the acquisition       
 of the Company by Delta. Section 3110 applies to acquisitions by the reporting company, Section 3120 applies to dispositions of portions       
 of the reporting company’s business (in the instant case, unlike the situations Section 3120 relates to, the Company itself would              
 sold and it would no longer be a reporting company), Section 3140 relates to roll up transactions, Section 3150 relates to situations          
 where the registrant was previously part of another entity and none of the situations outlined in Section 3160 describe the transactions       
 contemplated by the Merger Agreement.                                                                                                          |

| 2. | The Company believes that the merger is not probable and therefor pro forma financial information are          
 not required to be included in the Form S-3. The merger is not probable for the following a number of reasons: |

(a) The outside date has occurred. The Merger
Agreement was signed on September 23, 2024 and included an outside date of February 15, 2024, for its closing. None of the parties believed
that it would be reasonable for the Merger Agreement transactions to close after that date. Pursuant to the termination provisions of
the Merger Agreement, the Merger Agreement may be terminated at any time after February 15, 2025.

(b) Amendment to the Merger Agreement. Before
the merger can be completed, an amendment to the Merger Agreement will need to be signed that extends the outside date and provides for
changes to material terms, including economic terms that been requested by the parties. No agreement has been made on