Kaival Brands Innovations Group, Inc. (NASDAQ:KAVL), a company specializing in non-store retail, has received a notice from The Nasdaq Stock Market LLC on Monday, indicating non-compliance with the minimum bid price requirement.
The notice, which does not currently affect the company's listing, was triggered by the company's common stock closing below the $1.00 per share threshold for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
The company, headquartered in Grant-Valkaria, Florida, now has 180 calendar days, until March 17, 2025, to rectify the bid price deficit. During this grace period, Kaival Brands' stock will remain on The Nasdaq Capital Market. Compliance can be achieved if the stock's bid price closes at $1.00 or higher for at least 10 consecutive trading days within this timeframe.
Should Kaival Brands fail to meet the requirement by the deadline, it may qualify for a second 180-day period, provided it fulfills all other Nasdaq Capital Market initial listing standards, except for the bid price. The company would need to inform Nasdaq of its plans to address the deficiency, potentially through a reverse stock split.
In other recent news, Kaival Brands Innovations Group, a Florida-based company, has announced a public offering expected to raise approximately $6 million. The offering is made up of 3,921,500 units at $1.53 each, including one share of common stock or a warrant in lieu, plus one and one-half common warrants to purchase additional shares.
The warrants are immediately exercisable at the offering price and will expire five years post-issuance. Maxim Group LLC is the sole placement agent for the transaction, which is anticipated to close around June 24, 2024, pending customary conditions.
The proceeds from the offering are set to be used for general corporate purposes, working capital, and to support the expansion of Kaival Brands' operations. Kaival Brands has been actively expanding its product distribution and has a partnership with Philip Morris (NYSE:PM) Products S.A. for global distribution.
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