Kaival Brands Innovations Group, Inc. (KAVL): debt financing — Kaival Brands enters $650K promissory note with AJB Capital; discloses prior receivables financing

Kaival Brands Innovations Group, Inc.

Issued $650K promissory note to AJB Capital Investments at 10% interest; net proceeds $567K after OID and fees.
Note matures Feb 8, 2024; convertible into common stock only upon Event of Default at a minimum price of $0.10/share.
Company paid commitment fee of 400,000 shares of common stock to AJB; 200,000 redeemable if note repaid within 6 months.
Also disclosed two May 2023 receivables purchase agreements: sold $580K future receivables each for $400K, net proceeds ~$375K each.
CEO Eric Mosser personally guaranteed both receivables agreements.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kaival Brands Innovations Group, Inc. incurred debt of $580,000 with Clearview Funding Solutions LLC maturing approximately 28 weeks.

Principal: $580,000
Counterparty: Clearview Funding Solutions LLC
Maturity: approximately 28 weeks
Event: incurrence

Exact text from the filing

ordinary course of business of the Company and are material to the Company. Pursuant to the Clearview Agreement, the Company sold future receivables in the principal amount of $580,000 (the “Clearview Future Receivables”) to Clearview in a private transaction for a purchase price of $400,000 (giving effect to original issue discount of $180,000). In connection

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kaival Brands Innovations Group, Inc. incurred loan of $650,000 with AJB Capital Investments, LLC at 10% per annum maturing February 8, 2024.

Instrument: loan
Principal: $650,000
Counterparty: AJB Capital Investments, LLC
Rate: 10% per annum
Maturity: February 8, 2024
Event: incurrence

Exact text from the filing

On August 9, 2023, Kaival Brands Innovations Group, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (the “Purchaser”), pursuant to which the Company sold a Promissory Note in the principal amount of $650,000 (the “Note”) to the Purchaser in a private transaction for a purchase price of $585,000 (giving effect to original issue discount of $65,000).

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kaival Brands Innovations Group, Inc. incurred debt of $580,000 with Mr. Advance LLC at 9% per annum maturing approximately 28 weeks.

Principal: $580,000
Counterparty: Mr. Advance LLC
Rate: 9% per annum
Maturity: approximately 28 weeks
Event: incurrence

Exact text from the filing

Pursuant to the Advance Agreement, the Company sold future receivables in the principal amount of $580,000 (the “Advance Future Receivables”) to Advance in a private transaction for a purchase price of $400,000

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Kaival Brands Innovations Group, Inc. entered into Securities Purchase Agreement with AJB Capital Investments, LLC valued at $650,000 (effective 2023-08-09).

Action: entry
Agreement: equity purchase
Counterparty: AJB Capital Investments, LLC
Value: $650,000
Effective: 2023-08-09

Exact text from the filing

On August 9, 2023, Kaival Brands Innovations Group, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (the “Purchaser”), pursuant to which the Company sold a Promissory Note in the principal amount of $650,000

View on SEC.gov

73 debt financings filed in the last 30 days. Browse all debt financings →

Kaival Brands Innovations Group, Inc. filing history →

Source: SEC EDGAR

accession 0001731122-23-001513

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