Nasdaq Moves Toward Delisting Kaival Brands Innovations Group After Calling It a "Public Shell"

Author: Benzinga Newsdesk | November 17, 2025 06:33am

On November 10, 2025, the Company received a letter (the "Notice") from the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") that stated the Staff's belief that the Company is a public shell" and the continued listing of its securities is no longer warranted. In the Notice, the Staff explained that it based this belief on its review of the Company's public disclosures and materials submitted to the Staff by the Company. The Staff further stated that such belief is supported by the Company's lack of revenue generating assets and the substantial reduction in employees and operations since the fiscal year ended October 31, 2023. The Staff further cited that as reported in the Company's Quarterly Report on Form 10-Q filed on September 16, 2025, 87.7% of the Company's assets are patents and technology that don't have definitive plans for commercialization and that the Company reported under $400,000 in revenue for the nine months ended July 31, 2025, compared to $6.1 million for the 9 months ended July 31, 2024. The Notice further advised that, unless the Company timely requests an appeal of the Staff's determination before a Hearings Panel (the "Panel"), it would be subject to delisting.

 

The Company believes that it is an operating company and disagrees with Nasdaq's view regarding the Company's status as a "public shell" and accordingly, intends to timely appeal the Staff's determination. The appeal will automatically stay any suspension or delisting action pending the hearing and the expiration of any additional extension period that may be granted by the Panel pursuant to the hearing. There can be no assurance that the Company's appeal of the delisting determination will be successful, or that, if successful, the Company will be able to maintain compliance with all applicable listing criteria.

 

Posted In: KAVL