Kaival Brands Announces Pricing of $8.0 Million Underwritten Public Offering of Common Stock and Warrants

GRANT, Fla., Sept. 29, 2021 /PRNewswire/ -- Kaival Brands Innovations Group, Inc. (NASDAQ: KAVL) ("Kaival Brands"), the exclusive global distributor of products manufactured by Bidi Vapor, LLC ("Bidi Vapor"), today announced the pricing of its underwritten public offering of 4,700,000 shares of its common stock and accompanying warrants to purchase up to 3,525,000 shares of common stock. Each share of common stock was sold together with 0.75 warrants at a combined public offering price of $1.70, for gross proceeds of approximately $8.0 million, before deducting underwriting discounts and offering expenses. The warrants will have an exercise price of $1.90 per share, are exercisable immediately and will expire five years following the date of issuance. In addition, Kaival Brands has granted the underwriters a 45-day option to purchase up to an additional 705,000 shares of common stock and/or warrants to purchase 528,750 shares of common stock to cover over-allotments at the public offering price, less the underwriting discount. All of the shares of common stock and warrants were offered by the Company.

Kaival Brands currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

Maxim Group LLC is acting as sole book-running manager for the offering. 

The public offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-258339), previously filed with the U.S. Securities and Exchange Commission (SEC) on July 30, 2021 and declared effective on August 10, 2021. The securities may be offered only by means of a prospectus. A preliminary prospectus supplement describing the terms of the public offering has been filed with the SEC. A final prospectus supplement will be filed with the SEC and will form a part of the effective registration statement. Copies of the final prospectus supplement and accompanying prospectus relating to the public offering may be obtained, when available, by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or by telephone at (212) 895-3745 or by email at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Kaival Brands Innovations Group, Inc.

Based in Grant, Florida, Kaival Brands is a company focused on growing and incubating innovative and profitable products into mature and dominant brands in their respective markets. Our vision is to develop internally, acquire, own, or exclusively distribute these innovative products and grow each into dominant market-share brands with superior quality and recognizable innovation. Kaival Brands is the exclusive global distributor of all products manufactured by Bidi Vapor.

Forward Looking Statements

This press release includes statements that constitute "forward-looking statements" within the meaning of federal securities laws, which are statements other than historical facts that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will," and similar words. All forward-looking statements speak only as of the date of this press release. Although we believe that the plans, intentions, and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions, or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecasted in such statements. Our business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect results, and are often beyond our control. Factors that could cause or contribute to such differences include, but are not limited to, the success of the offering of common stock and warrants and the terms thereof; the timing and results of the FDA's PMTA process; the scope of future FDA enforcement of regulations in the ENDS industry; the FDA's approach to the regulation of synthetic nicotine and its impact on our business; the duration and scope of the COVID-19 pandemic and impact on the demand for the products we distribute; the actions governments, businesses, and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps that we could take to reduce operating costs; our inability to generate and sustain profitable sales growth; circumstances or developments that may make us unable to implement or realize anticipated benefits, or that may increase the costs, of our current and planned business initiatives; changes in government regulation or laws that affect our business; significant changes in our relationships with our distributors or sub-distributors; and those factors detailed by us in our public filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Except as required under the federal securities laws and the Securities and Exchange Commission's rules and regulations, we do not have any intention or obligation to update any forward-looking statements publicly, whether as a result of new information, future events, or otherwise.

SOURCE Kaival Brands

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