GRANT, Fla., Oct. 4, 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 closing of its
previously announced 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 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, of which Maxim Group LLC has exercised its option to
purchase an additional 528,750 warrants. 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 acted as sole book-running manager for the
offering.
The public offering was 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 were offered only by means of a prospectus. A final
prospectus supplement was filed on October
1, 2021, with the SEC and forms a part of the effective
registration statement. Copies of the final prospectus supplement
and accompanying prospectus relating to the public offering may be
obtained 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 syndicate@maximgrp.com.
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.
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SOURCE Kaival Brands