Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 507

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 3
Chunk 507
---
 purchase an aggregate of 5,882,250 shares of Common Stock in connection with the June 2024 Public Offering with an initial exercise
price of $1.53 per share (equal to 100% of the public offering price of each unit sold in this offering). The warrant is exercisable immediately
and will expire five years from the date of issuance. However, if, on the date that is 30 calendar days immediately following the Closing
Date (the “Reset Date”), the Reset Price (as defined below) is less than the exercise price of the Common Warrants on the
Reset Date, then the exercise price of the Common Warrants shall be decreased to the Reset Price. “Reset Price” means 100%
of the arithmetic average of the daily VWAPs during the five trading days immediately preceding the Reset Date, provided, that in no event
shall the Reset Price be less than $0.574 per share (subject to adjustment for reverse and forward stock splits, recapitalizations and
similar transactions following the date of the securities purchase agreement). Immediately after the Reset Date, the Reset Exercise Price
is $1.1577 per share. As of October 31, 2024, June 2024 Public Offering Warrants to purchase 5,549,050 shares of Common Stock remain outstanding.

GoFire Acquisition Warrants

The Company issued a common stock purchase warrant
to purchase an aggregate of 95,240 shares of Common Stock as consideration for the acquisition of the GoFire Purchased Assets. The Warrant
is exercisable for a period of four (4) years from the Closing Date. The exercise price for the Warrant Shares is $63.00, $84.00, $105.00
and $126.00 per share, respectively, for each of four tranches of 23,810 Warrant Shares. The exercise prices of the Warrant are subject
to customary stock-based (but not price-based) adjustments upon the occurrence of stock splits and the like involving the Common Stock.
The Warrant is exercisable on a cash basis only, except that the Warrant may be exercised on a “cashless basis” if at the
time of exercise there is not an effective registration statement under the Securities Act of 1933, as amended covering the public resale
of the Warrant Shares. As of October 31, 2024, GoFire Acquisition Warrants to purchase 95,240 shares of Common Stock remain outstanding.

September 2021 Public