Company: KAVL
Filing Date: 2025-02-21
Form Type: PRE 14C
Source: 0001731122-25-000278
Chunk: 10

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-21
Form: PRE 14C
Chunk 10
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 Split. In addition, if a Reverse Split is implemented, it will increase the number
of Kaival stockholders who own “odd lots” of fewer than 100 shares of Kaival Common Stock. Brokerage commission and other
costs of transactions in odd lots are generally higher than the costs of transactions of more than 100 shares of common stock. Accordingly,
a Reverse Split may not achieve the desired results of increasing marketability and liquidity of Kaival Common Stock described above.

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Effects of the Reverse Split

After the filing of the Definitive Information Statement on Schedule 14C and
the final determination by the Board of Directors of the ratio of the Reverse Split, which is expected to be any whole number in the range
of one-for-two (1:2) to one-for-twenty (1:20), the Company will file a Certificate of Amendment to our Certificate of Incorporation with
the State of Delaware in the form substantially similar to the form included as Exhibit A to this Information Statement and submit a Corporate
Event Notification Form to Nasdaq and take the appropriate actions in order to comply with Nasdaq Rule 5250(e)(7).

Except for the number of shares of Common Stock issued
and outstanding, the rights and preferences of shares of our Common Stock prior and subsequent to the Reverse Split would remain the same.
We do not anticipate that our financial condition, the percentage of our stock owned by management, the number of our stockholders, or
any aspect of our current business would materially change as a result of the Reverse Split.

Based upon the Reverse Stock Split ratio determined by the Board, proportionate adjustments are generally required to be made to the per
share exercise price and the number of shares issuable upon the exercise or conversion of all outstanding options, warrants, convertible
or exchangeable securities entitling the holders to purchase, exchange for, or convert into, shares of Common Stock. This would result
in approximately the same aggregate price being required to be paid under such options, warrants, convertible or exchangeable securities
upon exercise, and approximately the same value of shares of Common Stock being delivered upon such exercise, exchange or conversion,
immediately following the Reverse Stock Split as was the case immediately preceding the Reverse Stock Split. The number of shares deliverable
upon settlement or vesting of restricted stock awards will be similarly adjusted, subject to our treatment of fractional shares. The number
of shares reserved for issuance pursuant to these securities will be proportionately based upon the