Kaival Brands Shares Plunge After Pricing Secondary Equity Offering At Discount

Kaival Brands Innovations Group Inc KAVL has priced its underwritten public offering of 4.7 million shares of its common stock and accompanying warrants to purchase up to 3.5 million shares of common stock.
Each share of common stock was sold together with 0.75 warrants at a combined price of $1.70 for gross proceeds of $8.0 million. Kaival's closing price was $1.91 on September 29, 2021.
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.
Kaival Brands has granted the underwriters a 45-day option to buy up to an additional 0.7 million shares of common stock and/or warrants to purchase 0.53 million shares of common stock to cover over-allotments.
Kaival Brands intends to use the offering net proceeds for working capital and general corporate purposes.
Price Action: KAVL shares are trading lower by 24.6% at $1.44 in premarket on the last check Thursday.