On June 21, 2024, Kaival Brands Innovations Group, Inc., a Delaware-incorporated company, filed a Form 8-K with the SEC, reporting the entry into a securities purchase agreement. The agreement, dated June 21, 2024, involved the sale of $5,393,250 worth of securities, comprising 3,525,000 units. These units were divided into Common Units, each consisting of one share of common stock and one and one-half common warrants, and Pre-funded Units, each consisting of a pre-funded warrant and one and one-half common warrants. The Common Units sold at $1.53 each, while the Pre-funded Units sold at $1.529 each. The offering closed on June 24, 2024, with an additional 396,500 units sold outside the Purchase Agreement, bringing the total gross proceeds to approximately $5,999,895 before fees and expenses. The securities...Show More

On June 21, 2024, Kaival Brands Innovations Group, Inc., a Delaware-incorporated company, filed a Form 8-K with the SEC, reporting the entry into a securities purchase agreement. The agreement, dated June 21, 2024, involved the sale of $5,393,250 worth of securities, comprising 3,525,000 units. These units were divided into Common Units, each consisting of one share of common stock and one and one-half common warrants, and Pre-funded Units, each consisting of a pre-funded warrant and one and one-half common warrants. The Common Units sold at $1.53 each, while the Pre-funded Units sold at $1.529 each. The offering closed on June 24, 2024, with an additional 396,500 units sold outside the Purchase Agreement, bringing the total gross proceeds to approximately $5,999,895 before fees and expenses. The securities were offered under a Registration Statement declared effective by the SEC on June 21, 2024. The Common Warrants are exercisable immediately at $1.53 per share and will expire five years from issuance, with a potential reset price adjustment after 30 days. Pre-funded Warrants, sold to avoid exceeding beneficial ownership thresholds, have an exercise price of $0.001 per share and are also immediately exercisable. The company agreed to a 90-day lock-up period post-closing, with a six-month prohibition on variable rate transactions. Kaival Brands also entered into a Placement Agency Agreement with Maxim Group LLC, who acted as the sole placement agent on a 'best efforts' basis, earning a 7% commission on gross proceeds and a right of first refusal for 18 months for future offerings. The company issued a press release on June 24, 2024, announcing the closing of the $6.0 million public offering and stating the intention to use the net proceeds for general corporate purposes, working capital, and business expansion.