Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 1

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1
Chunk 1
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icks. Our current primary source of revenue is through an international licensing agreement with Philip Morris Products S.A.
(“PMPSA”), a wholly owned affiliate of Philip Morris International Inc. (“PMI”). See “Philip Morris Deed
of Licensing Agreement” below.  

We have also entered into a Merger
and Share Exchange Agreement (the “Merger Agreement”) with Delta Corp Holdings Limited, a company incorporated in England
and Wales (together with its successors and assigns, “Delta”), Delta Corp Holdings Limited, a Cayman Islands exempted company
(“Pubco”), KAVL Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Pubco (“Merger Sub”)
and Delta Corp Cayman Limited (the “Sellers”). If the Merger Agreement is consummated, Pubco will become our parent and all
new officers and directors will be appointed by Pubco, except that pursuant to the Merger Agreement we have the right to appoint one director
to the Pubco board of directors and we have agreed to appoint any family member of Ankitaben Patel (the widow of our former CEO, Nirajkumar
Patel) and/or Nirajkumar Patel who is qualified and identified by Bidi for this role prior to the closing of the Merger Agreement. While
we expect the transactions contemplated by the Merger Agreement to close (the “Closing”) in March or April of this year, no
assurances can be made that such transactions will close by then or ever. The transactions contemplated by the Merger Agreement are described
in further detail below under “The Merger and Share Exchange Agreement.”

Merger and Share Exchange Agreement

On September 23, 2024, we entered into a definitive
Merger and Share Exchange Agreement (the “Merger Agreement”) with Delta Corp Holdings Limited, a company incorporated in England
and Wales (together with its successors and assigns, “Delta”), Delta Corp Holdings Limited, a Cayman Islands exempted company
(“Pubco”), KAVL Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Pubco (“Merger Sub”),
and Delta Corp Cayman Limited (the “Seller”).

1

Merger and Share Exchange

Pursuant to the Merger Agreement, the Parties will
effect a merger and share exchange involving the following transactions:

(a)
Pubco shall acquire all of the issued and outstanding shares of Delta from each holder of Delta shares in exchange for the issuance