Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 330

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 1B
Chunk 330
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 lesser number of shares of Common Stock for a period of five (5) years
after the Closing Date. The Company entered into a financial advisor and placement agent agreement in April 2023 with an advisor. As part
of the consideration for the advisor’s services, the Company will issue warrants to purchase an aggregate of 17,143 shares of Common
Stock at an exercise price of $15.33 per share and a term of 5 years. During the twelve (12) month engagement period, the Company will
grant the advisor warrants to purchase 1,429 shares of Common Stock each month. The Company issued the first six (6) months of warrants
to purchase 8,572 shares of Common Stock upon the execution of the agreement and will issue monthly warrants each month at a rate of 1,429
warrants per month until 17,143 warrants have been issued in aggregate. The Company issued warrants to purchase a total of 15,715 shares
of Common Stock.

    F-23

The Company entered into a financial advisor and placement
agent agreement in August 2023 with an advisor. As part of the consideration for the advisor’s services, the Company issued warrants
to purchase an aggregate of 3,673 shares of common stock at an exercise price of $12.39 per share and a term of 5 years.

The total Other Warrants to purchase 36,912 shares
of Common Stock were cancelled on December 15, 2023.

Pre-Funded Warrants

The Company issued a pre-funded warrant to purchase
an aggregate of 2,175,000 shares of Common Stock in connection with the June 2024 Public Offering. The Pre-funded Warrants were sold to
Purchasers whose purchase of Common Units in the June 2024 Public Offering would have otherwise resulted in such Purchaser beneficially
owning more than 4.99% (or, at the election of the purchaser, 9.99%) of the Company’s outstanding Common Stock. The exercise price
of each Pre-funded Warrant is $0.001 per share. The Pre-funded Warrants are exercisable immediately and may be exercised at any time until
all of the Pre-funded Warrants are exercised in full.

Immediately after the Closing Date, the Purchasers
of the Pre-funded Units exercised all of the 2,175,000 Pre-funded Warrants and purchased shares of common stock. The Company issued 2,174,456
shares of common stock from exercises