Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 8

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 8
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 (C) any
other action or proposal involving any company affiliated with us that is intended, or would reasonably be expected, to prevent, impede,
interfere with, delay, postpone or adversely affect in any material respect the Business Combination or would reasonably be expected to
result in any of the conditions to the Closing under the Merger Agreement not being fulfilled.

4

Each Voting Support Party has also granted Delta (or
any designee of Delta) until the termination of the Voting Agreements, an irrevocable proxy and has appointed Delta (or any designee of
Delta) as their attorney-in-fact in respect of matters related to the Merger as specified in the Merger Agreement.

Each Voting Support Party has also agreed that until
the termination of the Voting Agreement, subject to certain exceptions, the Voting Support Party will not, nor will it cause its Affiliates
to without the prior written consent of Pubco and Delta, (i) offer for sale, sell (including short sales), transfer, tender, pledge, encumber,
assign or otherwise dispose of (including by gift), or enter into any contract, option, derivative, hedging or other agreement or arrangement
or understanding (including any profit-sharing arrangement) with respect to, or consent to, a transfer of, any or all of our securities,
(ii) grant any proxies or powers of attorney with respect to any or all of the securities; (iii) permit to exist any lien of any nature
whatsoever (subject to certain exceptions) with respect to any or all of our securities; or (iv) take any action that would have the effect
of preventing, impeding, interfering with or adversely affecting the Voting Support Party’s ability to perform its obligations under
the Voting Agreement.

The Voting Agreements will automatically terminate
upon the earlier of (i) the mutual written consent of each of Pubco, Delta, the Company, and the Voting Support Party, (ii) the effective
time of the Merger, and (iii) the date of termination of the Merger Agreement in accordance with its terms.

A majority of the holders of our common stock have
entered into Voting Agreements or agreements that are the same as the Voting Agreements.

Business Strategy

Our current business strategy is
to consummate the Business Combination. If and when this occurs, we will be a wholly owned subsidiary of Pubco and we do not know and
have not discussed what Delta’s business strategy for the Company will be in the future.