Kaival Brands Innovations Group Announces Reverse Stock Split

1-for-21 reverse stock split to become effective as of the opening of trading on Thursday, January 25, 2024

GRANT--VALKARIA, Fla., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) (“Kaival Brands,” or the “Company”), today announced that it is effecting a 1-for-21 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock (the “Common Stock”), effective with the opening of trading on Thursday, January 25, 2024.

Kaival Brands’ Common Stock will continue to trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol “KAVL”. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 483104402.

The Reverse Stock Split was approved by the Board of Directors of the Company (the “Board”) and Kaival Holdings, LLC, a Delaware limited liability company, which is the holder of approximately 68.64% of the Company’s outstanding Common Stock (the “Voting Stockholder”). Kaival Holdings LLC is co-managed by Nirajkumar Patel, the Chief Science & Regulatory Officer and director of the Company.

The material effects of the Reverse Stock Split are:

• Every twenty-one (21) shares of the issued and outstanding Common Stock has been combined into one (1) share of Common Stock.
• The number of outstanding shares of Common Stock has been proportionally reduced from 58,661,090 shares to approximately 2,793,386 shares.
• The Reverse Stock Split will not reduce the total number of Kaival Brands’ authorized shares of Common Stock.
• The ownership percentage of each Kaival Brands stockholder will remain unchanged, other than as a result of fractional shares. No fractional shares of Common Stock will be issued in connection with the Reverse Stock Split. Stockholders that would hold a fractional share of Common Stock as a result of the Reverse Stock Split will have such fractional shares of Common Stock rounded up to the nearest whole share of Common Stock.
• The number of shares of Common Stock available for issuance under the Company’s equity incentive plans and the Common Stock issuable pursuant to outstanding equity awards and common stock purchase warrants immediately prior to the Reverse Stock Split will be proportionately adjusted by the ratio of the Reverse Stock Split. The exercise prices of such outstanding options and warrants will also be adjusted in accordance with their respective terms.