Company: KAVL
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001731122-25-001141
Chunk: 17

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 17
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ifying us that we were no longer in compliance with the $1.00 minimum bid price requirement for continued listing on Nasdaq under Nasdaq
Listing Rule 5550(a)(2) (the “Bid Price Rule”). Although Nasdaq has granted us 180 calendar days, or until September
30, 2025, to regain compliance with the Bid Price Rule, there can be no assurance that we will regain such compliance and Nasdaq could
make a determination to delist our common stock.

Any delisting determination by Nasdaq could seriously
decrease or eliminate the value of an investment in our common stock and other securities linked to our common stock. While a listing
on an over-the-counter exchange could maintain some degree of a market in our common stock, we could face substantial material adverse
consequences, including, but not limited to, the following: limited availability for market quotations for our common stock; reduced
liquidity with respect to and decreased trading prices of our common stock; a determination that shares of our common stock are “penny
stock” under the SEC rules, subjecting brokers trading our common stock to more stringent rules on disclosure and the class of
investors to which the broker may sell the common stock; limited news and analyst coverage for our Company, in part due to the “penny
stock” rules; decreased ability to issue additional securities or obtain additional financing in the future; and potential breaches
under or terminations of our agreements with current or prospective large stockholders, strategic investors and banks. The perception
among investors that we are at heightened risk of delisting could also negatively affect the market price of our securities and trading volume of our common stock.

If the proposed Reverse Stock Split is effected, the resulting per-share market price may not attract institutional investors or investment funds and may not satisfy the investing guidelines of such investors and, consequently, the trading liquidity of our common stock may not improve.

While the Board of Directors believes that a higher stock price may help generate investor interest, there can be no assurance that the proposed Reverse Stock Split will result in a per-share market price that will attract institutional investors or investment funds or that such share price will satisfy the investing guidelines of institutional investors or investment funds. As a result, the trading liquidity of our common stock may not necessarily improve.

We cannot assure you that the proposed Reverse Stock Split will increase the price of our common stock and the proposed Reverse Stock Split may decrease the liquidity of our common stock and result in higher transaction costs.

We may need to effect