Company: KAVL
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001731122-25-000319
Chunk: 13

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 13
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 $                  | 9,864,393.21 |

| *  |     | Includes 392,832 shares of Kaival Common Stock that will be issued at or prior to the Closing of the Merger                                                                                                 |
| ** |     | Based on a hypothetical post-split stock price calculated by multiplying the closing stock price on February 28, 2025 of $0.8265by the assumed split ratio of one-for-ten (1:10) and one-for-twenty (1:20). |

Vote Required

Pursuant to DGCL and the Company’s Certificate
of Incorporation, the approval of the Reverse Split required a majority of the Company’s outstanding voting capital stock. Pursuant
to the Company’s Certificate of Incorporation, each share of Common Stock is entitled to one vote on all matters submitted to the
Company’s stockholders for approval. As discussed above, stockholders owning greater than a majority of the outstanding shares of
Common Stock have consented to Reverse Split.

Material U.S. Federal Income Tax Consequences

The following is a summary
of material U.S. federal income tax consequences of a Reverse Split to stockholders. This summary is based on the provisions of the Internal
Revenue Code of 1986, as amended (the “Code”), U.S. Treasury regulations, administrative rulings and judicial decisions, all
as in effect on the date of this filing, and all of which are subject to change or differing interpretations, possibly with retroactive
effect. Any such change or differing interpretation could affect the tax consequences described below.

We have not sought and will
not seek an opinion of counsel or ruling from the Internal Revenue Service (the “IRS”) with respect to the statements made
and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will agree with such statements
and conclusions.

This summary is limited to
stockholders that are U.S. holders, as defined below, and that hold our common stock as a capital asset (generally, property held for
investment).

This summary is for general
information only and does not address all U.S. federal income tax considerations that may be applicable to a holder’s particular
circumstances or to holders that may be subject to special tax rules, such as, for example, brokers and dealers in securities, currencies
or commodities, banks and financial institutions, regulated investment companies, real estate investment trusts, expatriates, tax-exempt
entities, governmental organizations, traders in