Kaival Brands Innovations Group, Inc. KAVL stock is moving higher on Monday after the company and Delta Corp Holdings Limited, a logistics and asset management company, entered a merger and share exchange agreement.
What Happened: Under the agreement, Kaival Brands and Delta will become subsidiaries of a holding company incorporated in the Cayman Islands named Pubco.
Delta shareholders will become the majority shareholders of Pubco. The new company will trade on the Nasdaq and it will be led by the Delta management team.
Mark Thoenes, Interim CEO of Kaival Brands, stated, “This transaction marks an exciting new chapter for Kaival Brands. Delta’s flexible, asset-light business model positions the combined Company to capitalize on high growth areas within the energy and raw materials markets and offers our shareholders a unique opportunity.”
The companies anticipate that the transaction will close during the 2024 fourth quarter. The deal is still pending shareholder approval.
KAVL Price Action: At the time of writing, Kaival Brands stock is moving 138.3% higher at $1.38, according to data from Benzinga Pro.
Image: 8701393 from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
