Company: KAVL
Filing Date: 2025-08-04
Form Type: S-3/A
Source: 0001731122-25-001067
Chunk: 27

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-04
Form: S-3/A
Chunk 27
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 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.

<div align='center'>USE OF PROCEEDS</div>

As of the date of this prospectus, we cannot specify
with certainty all of the particular uses for the net proceeds to us from this offering. However, we currently intend to use the net proceeds
from the sale of the securities from offerings under this prospectus for capital expenditures, acquisitions of additional companies or
brands, investments and general corporate purposes, including working capital unless the applicable prospectus supplement states otherwise.
General corporate purposes may include working capital.

As a result, we will retain broad discretion in the
allocation of the net proceeds from this offering and could utilize the proceeds in ways that may not necessarily improve our results
of operations or enhance the value of our common stock. We would not receive proceeds from sales by our security holders.

DESCRIPTION OF SECURITIES

The descriptions of the securities contained in this
prospectus, together with the applicable prospectus supplements, summarize the material terms and provisions of the various types of securities
that we may offer. We will describe in the applicable prospectus supplement relating to any securities the particular terms of the securities
offered by that prospectus supplement. If we so indicate in the applicable prospectus supplement, the terms of the