Nasdaq Grants Kaival Brands 180-day Extension to Regain Compliance

GRANT-VALKARIA, Fla., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands," the "Company" or "we,” “our” or similar terms), a company focused on incubating and commercializing innovative products into mature and dominant brands, with a current focus on the distribution of electronic nicotine delivery systems (ENDS) intended for adults 21 and over, today announced that the NASDAQ Stock Market (“Nasdaq”) has granted Kaival Brands an additional 180 days to regain compliance with Nasdaq’s $1.00 minimum bid price rule requirement under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”), following the expiration of the initial 180 days period to regain compliance on July 31, 2023.

Nasdaq’s action follows the submission by Kaival Brands to Nasdaq of a plan for regaining compliance with the Bid Price Rule.

As a result of the extension, Kaival Brands now has until January 29, 2024 to regain compliance with the $1.00 minimum bid price rule requirement. If at any time before January 29, 2024, the bid price of Kaival Brands’ common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification to Kaival Brands that it has achieved compliance with the bid price requirement. If Kaival Brands chooses to implement a reverse stock split to regain compliance with the Bid Price Rule, it must complete the reverse split no later than 10 business days prior to the expiration of the additional 180 calendar day period in order to timely regain compliance.

If Kaival Brands does not regain compliance with the bid price requirement by January 29, 2024, Nasdaq will provide written notification to Kaival Brands that its common stock will be subject to delisting. At such time, Kaival Brands may appeal the delisting determination to a Nasdaq Hearings Panel. There can be no assurance that, if Kaival Brands does appeal a subsequent delisting determination, such appeal would be successful. Kaival Brands’ common stock would remain listed pending the Panel’s decision.

The current notification from Nasdaq has no immediate effect on the listing or trading of the Kaival Brands’ common stock, which will continue to trade on the Nasdaq Capital Market under the symbol “KAVL”.

ABOUT KAIVAL BRANDS

Based in Grant-Valkaria, Florida, Kaival Brands is a company focused on incubating and commercializing innovative products into mature and dominant brands, with a current focus on the distribution of electronic nicotine delivery systems (ENDS) also known as “e-cigarettes” for use by customers 21 years and older. Our business plan is to seek to diversify into distributing other nicotine and non-nicotine delivery system products (including those related to hemp-derived cannabidiol (known as CBD) products). Kaival Brands and Philip Morris Products S.A. (via sublicense from Kaival Brands) are the exclusive global distributors of all products manufactured by Bidi Vapor.