Company: KAVL
Filing Date: 2025-08-18
Form Type: 424B5
Source: 0001731122-25-001141
Chunk: 23

Company: Kaival Brands Innovations Group, Inc.
Filing Date: 2025-08-18
Form: 424B5
Chunk 23
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 made and other sales parameters as we deem appropriate. Once we have so instructed Maxim,
unless Maxim declines to accept the terms of the notice, Maxim has agreed to use its commercially reasonable efforts consistent with its
normal trading and sales practices to sell such shares up to the amount specified on such terms. The obligations of Maxim under the Sales
Agreement to sell our common stock are subject to a number of conditions that we must meet. We may instruct Maxim not to sell common stock
if the sales cannot be effected at or above the price designated by us from time to time. We or Maxim may suspend the offering of common
stock upon notice and subject to other conditions.

We will pay Maxim commissions for its services in acting as agent in the sale
of common stock. Maxim will be entitled to a commission in an amount equal to 3.5% of the gross proceeds from the sale of common stock
offered hereby. In addition, we have agreed to reimburse Maxim for initial fees and disbursements related to its legal counsel in an amount
not to exceed $50,000, in addition to up to $7,500 for each quarterly and annual bringdown. We shall bear and be responsible for all expenses
that are customarily borne by issuers for transactions of the type set forth herein. We estimate that the total expenses for the offering,
excluding commissions payable to Maxim under the terms of the Sales Agreement, will be approximately
$100,000.

Settlement for sales of common stock will generally
occur on the first business day, or such shorter settlement cycle that is in effect under Exchange Act Rule 15c6-1 from time to time,
following the date on which any sales are made or on some other date that is agreed upon by us and Maxim in connection with a particular
transaction, in return for payment of the net proceeds to us. There is no arrangement for funds to be received in an escrow, trust or
similar arrangement.

We have agreed to provide indemnification and contribution
to Maxim against certain civil liabilities, including liabilities under the Securities Act or the Exchange Act, and to contribute to
payments that Maxim may be required to make in respect of such liabilities.

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Maxim will use its commercially reasonable efforts,
consistent with its sales and trading practices, to solicit offers to purchase our common stock shares under the terms and subject to
the conditions set forth in the Equity Distribution Agreement. The sales agent may be deemed to be an underwriter within the meaning of