MILWAUKEE--(BUSINESS WIRE)--Ademi LLP is investigating Kaival Brands (NASDAQ: KAVL) for possible breaches of fiduciary duty and other violations of law in its transaction with Delta.
Click here to learn how to join our investigation or call Guri Ademi toll-free at 866-264-3995. There is no cost or obligation to you.
In the transaction, Kaival Brands shareholders will receive approximately only $2.66 per share or, in the aggregate, $270 million in ordinary shares of the newly created holding company Pubco, subject to certain adjustments. At closing, Kaival Brands shareholders are anticipated to collectively own approximately only 10.30% of the outstanding ordinary shares of Pubco, and Delta shareholders are anticipated to collectively own approximately 89.70% of the outstanding ordinary shares of Pubco.
The transaction agreement unreasonably limits competing transactions for Kaival Brands by imposing a significant penalty if Kaival Brands accepts a competing bid. Kaival Brands insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Kaival Brands’ board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
If you own Kaival Brands common stock and wish to obtain additional information, please contact Guri Ademi either at gademi@ademilaw.com or toll-free: 866-264-3995, or here.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights throughout the country. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.
