Kaival Brands Innovations Group, Inc. (NASDAQ:KAVL), an over-the-counter trading company, received a notice from The Nasdaq Stock Market LLC on Monday, indicating non-compliance with the minimum bid amount requirement.
The notice, which does not currently affect the company's listing, was triggered by the closing of the company's common stock below $1.00 per share for 30 consecutive business days, in violation of Nasdaq Listing Rule 5550(a)(2).
The company, headquartered in Grant-Valkaria, Florida, now has 180 calendar days, until March 17, 2025, to correct the shortfall in the bid price. 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.
In the event that Kaival Brands fails to meet the requirement by the deadline, it may be eligible for a second 180-day period, provided it fulfills all other initial listing standards on the Nasdaq Capital Market, except for the bid price. The company will need to notify Nasdaq of its plans to deal with the shortfall, possibly through a reverse stock split.
In other recent news, Kaival Brands Innovations Group, a Florida-based company, has announced a public offering that is expected to raise approximately $6 million. The offering was made in 3,921,500 units at $1.53 each, consisting of one share of common stock or warrant in lieu, and one and one-half common warrants to purchase additional shares.
The warrants are exercisable immediately at the offering price and will expire five years after issuance. Maxim Group LLC is the sole placement agent for the transaction, which is expected to close on or about June 24, 2024, pending customary conditions.
Proceeds from the donation are set to be used for general corporate purposes, working capital, and to support the expansion of Kaival Brands operations. Kaival Brands has been expanding its product distribution and has a partnership with Philip Morris (NYSE:) Products SA for global distribution.
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