Company: KAVL
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0001731122-25-000185
Chunk: 547

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 4
Chunk 547
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, which is owned by one of the RJ Reynolds Entities. The ITC Complaint
requests the ITC grant: (a) temporary and permanent limited exclusion orders pursuant to Section 337(e) of the Tariff Act of 1930, as
amended, which would prohibit the importation of the Bidi Stick in the United States; and (b) issue temporary and permanent cease and
desist orders pursuant to 337(f) of the Tariff Act of 1930, as amended, which would prohibit the sale and distribution of the Bidi Stick
in the United States. No damages are recoverable in the proceedings before the ITC.  Since the initiation of the ITC Complaint,
we have not imported any Bidi Sticks and currently do not generate any revenue from the sale of Bidi Sticks.     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 “Item 1 Business--Philip Morris Deed of
Licensing Agreement”  

37

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 “Item 1 Business--The Merger and