Kaival Brands Innovations Group, Inc. (OTC: KAVL) Announces Cancellation Of 300,000,000 Shares Of Common Stock

GRANT, Fla., Aug. 21, 2020 (GLOBE NEWSWIRE) -- Kaival Brands Innovations Group, Inc. (OTCQB: KAVL(“Kaival Brands,” the “Company,” or “we”), a company focused on growing and incubating innovative and profitable products into mature, dominant brands, today announced that 300,000,000 shares of its common stock have been returned and cancelled by its largest stockholder, Kaival Holdings, LLC (the “Stockholder”). Our management and directors are the owners of the Stockholder.

The cancellation of the 300,000,00 shares of the Company’s common stock results in the decrease of issued and outstanding shares of the Company’s common stock from 576,495,148 to 276,495,148, or a 52.1% reduction in the Company’s issued and outstanding shares of its common stock.

In exchange for the return of the 300,000,000 shares of the Company’s common stock, the Company issued to the Stockholder 3,000,000 shares of its newly designated Series A Preferred Stock (the “Series A Preferred Stock”). Each share of the Series A Preferred Stock is convertible into one hundred shares of the Company’s common stock; however, the Series A Preferred Stock may not be converted until or after November 1, 2023 unless certain triggering events, such as a change-of-control, occurs. The Series A Preferred Stock have no voting rights.

“We believe that the cancellation of the 300,000,000 shares of the Company’s common stock in exchange for 3,000,000 shares of Series A Preferred Stock is a strategic move for the benefit of all stockholders. Further, the Series A Preferred Stock cannot be converted prior to November 2023, barring any triggering event, which we believe will help maintain stability in the market price of our common stock. We are always evaluating stockholder-friendly options available that we believe will assist us in achieving our goal of increasing value for our long-term investors,” said Niraj Patel, the Company’s Chief Executive Officer.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and ...

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