---
schema_version: "secwatch.filing_event.v1"
accession: "0001731122-23-001513"
form_type: "8-K"
ticker: "KAVL"
cik: "0001762239"
company_name: "Kaival Brands Innovations Group, Inc."
filed_at: "2023-08-15T23:59:59+00:00"
generated_at: "2026-06-11T09:31:17.089488+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Kaival Brands enters $650K promissory note with AJB Capital; discloses prior receivables financing

## Summary
- 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.

## SEC filing metadata
- accession: 0001731122-23-001513
- form_type: 8-K
- ticker: KAVL
- cik: 0001762239
- company_name: Kaival Brands Innovations Group, Inc.
- filed_at: 2023-08-15T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/0001731122-23-001513-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/e4932_8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001731122-23-001513
- JSON: https://secwatch.observer/filing/0001731122-23-001513.json
- Plain text: https://secwatch.observer/filing/0001731122-23-001513.txt

## Key facts
- Debt Financings
  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
  source text: 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
  evidence_url: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/0001731122-23-001513-index.htm
- Debt Financings
  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
  source text: 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).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/0001731122-23-001513-index.htm
- Debt Financings
  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
  source text: 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
  evidence_url: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/0001731122-23-001513-index.htm
- Material Agreements
  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
  source text: 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
  evidence_url: https://www.sec.gov/Archives/edgar/data/1762239/000173112223001513/0001731122-23-001513-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.