On Wednesday, KAVL stock fell 12.89% at $1.9600 with more than 17.27 million shares, compared to its average volume of 3.13 million shares. The stock has moved within a range of $1.8000 – 2.1200 after opening the trade at $2.0400.
Although it is true that the Kaival Brands Innovations Group Inc (NASDAQ:KAVL) stock tanked yesterday by as much as 13% due to a case of profit booking from many of its investors, it is necessary to get the full picture.
Despite the steep fall in the share price, it is important to keep in mind that in the past week the Kaival Brands Innovations Group stock is still up by 40%. There has been no news about the company in recent days but earlier this month the global distributor of Bidi Vapor LLC manufactured products, had made a significant announcement.
On October 4, Kaival Brands Innovations Group announced that it had managed to close the underwritten public offering of as many as 4,700,000 shares of the common stock. In addition to that, the company also offer warrants, which were going to entitle the holders to pick up as many as 3,525,000 shares of the Kaival Brands common stock.
It was a significant development for the company considering the fact that it managed to raise as much as $8 million in gross proceeds from the public offering. It now remains to be seen if the Kaival Brands Innovations Group stock can manage to recover quickly.
KAVL stock is trading below the 50-Day and 200-Day Moving averages of $3.80 and $13.21. The stock is down 56% so far this year.