Kaival Brands Innovations Group Inc (KAVL)

[daiello]

Hey all,

So I've been in contact with the T/A on a weekly basis to get updated numbers since OTC Markets isn't refreshed very often and I came across an increase in the unrestricted that happened at some point between 9/1 and 9/8.

I'm not sure if I already posted that information, but it increased exactly 5,950,000. I think we're definitely seeing some of those shares hitting the market so I've been diving deeper into it.

I reached out to the company asking who received the new unrestricted shares and they said they have only issued restricted shares and unable to sell until Summer 2021 and didn't seem to realize the unrestricted increased the way it did. They actually asked me where I was able to find that data which leads me to believe they were unaware of what was happening. Considering the O/S did NOT increase along with the restricted to unrestricted conversion I started digging into old financials from pre-KAVL.

After further investigation, the 5,950,000 shares matches perfectly to two old insiders back prior to 2011. 3,498,000 shares owned by Mr Gary Cioffi and 2,452,000 shares are owned by Mr Shawn Garrity.

From what I gather, these individuals had to reach out to the T/A to change their shares from restricted to unrestricted and the T/A needed to reach out to the company for approval. Now, it would seem odd that the company approved the conversion when just a week later they are confused about the change in unrestricted. I know there is legal ramifications for the T/A to make decisions like that, so we'll just have to see what comes of this.

I have let the company know the details of my findings, but based on the constant selling the last week or two it seems like these two are the culprits.

Also, as a reminder, the O/S did not increase. All valuations remain the same, so it's just the short term pressure that will affect the share price.