Company: KAVL
Filing Date: 2025-02-21
Form Type: PRE 14C
Source: 0001731122-25-000278
Chunk: 4

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-21
Form: PRE 14C
Chunk 4
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*Based on [ ] issued and outstanding shares of Common Stock as of February
25, 2025.

Material Terms of the Reverse Split

As of February 25, 2025 (the “Record Date”),
the Company has [ ] issued and outstanding shares of Common Stock, which does not include shares of Common Stock reserved for issuance
underlying certain derivative securities. The Majority Consenting Stockholders own, in the aggregate, approximately [ ]% of the total
voting power of all issued and outstanding voting shares of the Company.

In the event that the Board of Directors implements a reverse split at a ratio of any whole number within the range between one-for-two (1:2)
and one-for-twenty (1:20), the maximum authorized by the Written Consents, of which there can be no assurance, there will be approximately
[ ] shares of Common Stock issued and outstanding if the ratio of one-for-ten (1:10) (the “Estimated Split Ratio”), which
is the midpoint between the split ratio range of one-for-two (1:2) and one-for-twenty (1:20), is used. The Board of Directors believes
that the Reverse Split will affect all holders of shares of Common Stock and holders of derivative securities equally. The Company believes
that the Reverse Split will benefit all stockholders, as without the Reverse Split, the Company in all likelihood will have difficulties
maintaining compliance with the listing requirements of Nasdaq.

However, the reduction in the number of issued and
outstanding shares of Common Stock following implementation of the Reverse Split, if implemented, could adversely affect the trading market
for our Common Stock by reducing the relative level of liquidity of the shares of Common Stock. Further, there can be no assurance that
the Reverse Split will result in a proportionate increase or, for that matter, any increase, in the price of the shares of Common Stock
on Nasdaq.

Any new shares issued following the Effective Date
of the Reverse Split will be fully-paid and non-assessable shares. On the Effective Date of the Reverse Split, the number of stockholders
will remain unchanged because those stockholders who would otherwise only be entitled to receive a fractional share will receive a number
of shares rounded up to the next whole number.

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The Reverse Split will not change the number of authorized
shares of Common Stock, which will continue to be 1,000,000