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