Company: KAVL
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001731122-25-001141
Chunk: 55

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 55
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 general terms and provisions
of the preferred stock that we may offer by this prospectus. The prospectus supplement will describe the specific terms of the series
of the preferred stock offered through that prospectus supplement. Those terms may differ from the terms discussed below. Any series of
preferred stock that we issue will be governed by our certificate of incorporation, as amended, including the certificate of designations
relating to such series of preferred stock, and our by-laws.

As of the date of this prospectus, we had 5,000,000 authorized shares of preferred
stock out of which 3,000,000 are Series A Convertible Preferred Stock and 900,000 are Series B Convertible Preferred Stock. We currently
do not have any shares of Series A Convertible Preferred Stock outstanding.

We issued 900,000 shares of the Series B Preferred
Stock as consideration for the acquisition of intellectual property assets from GoFire in May 2023. The Series B Preferred Stock carries
no voting rights except: (i) with respect to the ability of the holders of a majority of the then outstanding Series B Preferred Stock
(the “Majority Holders”), to nominate a director to our board of directors, and (ii) that the vote of the Majority Holders
is necessary for effecting any amendment to the Company’s Certificate of Incorporation or Certificate of Designation that affects
the Series B Preferred Stock. The Series B Preferred Stock is redeemable at our option at a redemption price of $15 per share, subject
to potential downward adjustments based on the trading price of the Common Stock. Subject to additional limitations in the GoFire APA,
the Series B Preferred Stock holds seniority over the Common Stock and each other class of series of securities now existing or hereafter
authorized with respect to dividend rights, the distribution of assets upon liquidation, and dissolution and redemption rights. Upon a
liquidation and winding up of our company, the holders of Series B Preferred Stock are entitled to a liquidation preference of $15 per
share (the “Liquidation Preference”),

though the redemption may be adjusted downward based on the trading price of the Common Stock at the time of liquidation. The holders
of Series B Preferred Stock are entitled to receive a dividend equal to 2% of the Liquidation Preference, accruing from May 30, 2023
and payable on the eighteen-month anniversary of May 30, 2023. Dividends compound on each six month anniversary of the original issuance