Kaival Brands plunges after pricing stock-and-warrants deal

Kaival Brands Innovations

30/09/2021 11:16

** Kaival Brands  KAVL.O  shares down 24% premarket after
vaping products distributor prices follow-on
    ** Co announces 4.7 mln shares and warrants to buy up to
additional 3.5 mln shares, raises $8 mln for working capital and
general purposes  urn:newsml:reuters.com:*:nPn4TT7mYa
    ** Offering price of $1.70 represents 11% discount to
stock's last close of $1.91
    ** 5-yr warrants have exercise price of $1.90, and can be
exercised immediately
    ** KAVL has ~23.63 mln shares outstanding, per Refinitiv
data, and ~6.55 mln of public float
    ** Maxim Group sole bookrunner for offering
    ** On Sept 15, shares fell 42% to $2.61 after co slashed its
rev forecast over regulatory uncertainty, and said COVID-19-led
supply-chain disruptions impacted development of Bidi Pouch, a
synthetic nicotine-based smokeless pouch  urn:newsml:reuters.com:*:nL4N2QH31O
    ** >300k shares have traded before the bell vs 30-day avg
volume of ~364k, per Refinitiv

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))