Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 98

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 98
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 additional shares of our common or preferred stock, or the perception that such issuances could occur, may
cause prevailing market prices for our common stock to decline. In addition, our board of directors is authorized to issue additional
series of shares of preferred stock without any action on the part of our stockholders. Our board of directors also has the power, without
stockholder approval, to set the terms of any such series of shares of preferred stock that may be issued, including voting rights, conversion
rights, dividend rights, preferences over our common stock with respect to dividends or if we liquidate, dissolve, or wind up our business
and other terms. If we issue cumulative preferred stock in the future that has preference over our common stock with respect to the payment
of dividends or upon our liquidation, dissolution or winding up, or if we issue preferred stock with voting rights that dilute the voting
power of our common stock, the market price of our common stock could decrease.

15

Our
common stock is subject to the SEC’s penny stock rules and accordingly, broker-dealers may have trouble in completing
customer transactions and trading activity in our securities may be adversely affected.

The
SEC has adopted regulations, which generally define “penny stock” to be an equity security that has a market price of less
than $5.00 per share, subject to specific exemptions. The market price of our common stock is less than $5.00 per share and therefore
would be a “penny stock” according to SEC rules, unless we are listed on a national securities exchange. Under these rules,
broker-dealers who recommend such securities to persons other than institutional accredited investors must:

    ●
    Make
    a special written suitability determination for the purchaser;

    ●
    Receive
    the purchaser’s prior written agreement to the transaction;

    ●
    Provide
    the purchaser with risk disclosure documents which identify certain risks associated with investing in “penny stocks” and
    which describe the market for these “penny stocks” as well as a purchaser’s legal remedies;

    ●
    Obtain
    a signed and dated acknowledgment from the purchaser demonstrating that the purchaser has received the required risk disclosure document
    before a transaction in a “penny stock” can be completed.

As
our common stock is subject to these rules, broker-dealers may find it difficult to effectuate customer transactions and trading activity
in our securities may be adversely affected. As a result, the market price of