Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 6

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 6
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 not include—

(i)hemp,
as defined in section 297A of the Agricultural Marketing Act of 1946.

II.Limits
of the AIA

Although
the AIA removed “hemp” from the CSA, the Act has limitations.

a.Products
containing more than 0.3% of 9∆-THC are still subject to the CSA.

Notably,
the AIA’s exclusion of “hemp” from the CSA definition of “marihuana” is limited to those parts, derivatives,
or extracts of the plant containing less than 0.3% of 9∆-THC. Parts, derivatives, and extracts containing levels of 9∆-THC
greater than 0.3% meet the definition of marihuana and are subject to the CSA. Consequently, manufacturers and distributors of CBD
products must be prudent with respect to verifying the levels of 9∆-THC in products.

b.Hemp
production and cultivation restrictions

The
AIA requires the establishment of a shared Federal-state program to regulate the cultivation and production of hemp. The USDA is actively
engaged in rulemaking efforts to implement these requirements and state laws are evolving in response. Our Company is not involved in
the cultivation or production of hemp; however, we recognize that new rules will impact the industry as a whole and we are closely monitoring
the USDA’s rulemaking efforts.

c.Hemp-derived
CBD remains subject to FDA regulatory authority

Further,
The Federal Food, Drug and Cosmetic Act (“FDCA”) and the AIA authorize the FDA to regulate the marketing and distribution
of hemp products in interstate commerce that are intended for consumption, including topical use. Pursuant to its jurisdiction, FDA may
regulate hemp as a feed, food, dietary supplement, cosmetic or drug depending on the intended use of the hemp and whether the hemp is
otherwise a permissible ingredient for a particular intended use. The AIA expressly preserves the FDA’s authority over “hemp”
that is intended to be used as a drug, device, cosmetic, food (including animal food), dietary supplement, or tobacco product.

Generally,
hemp-derived CBD products that are intended for ingestion and intended to support the normal function/structure of the body or added
as an ingredient in food, may be considered a dietary supplement or conventional food under the FDCA. However, FDA has taken the position
through advisory Warning Letters that CBD products are precluded from being marketed as dietary