Company: KAVL
Filing Date: 2025-02-21
Form Type: PRE 14C
Source: 0001731122-25-000278
Chunk: 5

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-21
Form: PRE 14C
Chunk 5
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,000 shares of Common Stock, or the par value of our Common Stock, which will
continue to be $0.001 per share. While the aggregate par value of our outstanding Common Stock will be reduced as a result of the Reverse
Split, our additional paid-in capital will be increased by a corresponding amount. Therefore, the Reverse Split will not affect our total
stockholders’ equity. All share and per share information will be retroactively adjusted to reflect the Reverse Split for all periods
presented in our future financial reports and regulatory filings.

On [ ], 2025, the trading date immediately preceding
the filing of the Definitive Information Statement on Schedule 14C, the closing price of our shares of Common Stock on Nasdaq was $[ ]
and the total market value was approximately $[ ] based on the [ ] shares of Common Stock issued and outstanding.

Rationale for the Reverse Split

The Board of Directors believes that a Reverse Split should, at least initially, and based upon reverse split of the issued and outstanding
shares of Common Stock at an assumed ratio of one-for-ten (1:10), which is the midpoint between the split ratio range of one-for-two (1:2)
and one-for-twenty (1:20), and $[ ] stock price as of [ ], 2025, increase the price of our shares of Common Stock to approximately $[
] per share. Our stockholders should understand that as of the date of the Definitive Information Statement, our Board of Directors has
not determined the exact ratio of the Reverse Split nor the date that the Reverse Split will be implemented.

The Company entered into a Merger
and Share Exchange Agreement on September 23, 2024, and as amended on February 21, 2025, with Delta Corp Holdings Limited, a company incorporated
in England and Wales (“Delta”), shareholders of Delta, including Delta Corp Cayman Limited, a company organized under
the laws of the Cayman Islands, which is owned entirely beneficially by Delta’s founder and chief executive officer, Mudit Paliwal
and his related persons (the “Sellers”), Delta Corp Holdings Limited, a Cayman Islands exempted company (“Pubco”),
KAVL Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Pubco (“Merger Sub”), and the other parties
thereto (as amended from time to time, collectively, the “Merger Agreement”). The Merger Agreement provides for the
combination of the Company