Company: SACH
Filing Date: 2025-05-28
Form Type: S-3/A
Source: 0001628280-25-028093
Chunk: 9

Company: Sachem Capital Corp.
Filing Date: 2025-05-28
Form: S-3/A
Chunk 9
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 performance, we have reduced the dividend payable to shareholders.

• The price of our publicly traded securities has declined significantly.

• Notes having an aggregate outstanding principal amount of $56.4 million are due and payable in full on September 30, 2025.

• We are subject to the “baby shelf” rules, which limits the amount of securities we can sell pursuant to an S-3 Registration Statement.

• The illiquidity of our loan portfolio could significantly impede our ability to respond to adverse changes in economic, financial, investment and other conditions.

• Declining real estate valuations have resulted in impairment charges or provisions for credit losses, the determination of which involves a significant amount of judgment on our part. Any future impairment or provision could have a material adverse effect on us.

• We have experienced a significant increase in the number of non-performing loans.We may adopt new or change our existing underwriting, financing, or other strategies and asset allocation and operational and management policies without shareholder consent, which may result in the purchase of riskier assets, the use of greater leverage or commercially unsound actions, any of which could materially adversely affect our business, financial condition and results of operations and our ability to make distributions to our shareholders.

• We may be adversely affected by deficiencies in foreclosure practices as well as related delays in the foreclosure process.

• We have significant unfunded commitments to existing borrowers. If we are unable to fund these commitments, we may be subject to borrower legal claims.

• If we cannot access external sources of capital on favorable terms or at all, our ability to execute our business and growth strategies will be impaired.

• We employ leverage, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us. If we are unable to leverage our assets to the extent we anticipate, the returns on certain if not all of our assets could be diminished, which may limit or eliminate our ability to make distributions to our shareholders.

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• We are leveraged. If we default on our obligations, we may suffer adverse consequences.

• Our outstanding indebtedness imposes, and additional debt we may incur in the future will likely impose, financial and operating covenants that restrict our business activities, including limitations that could hinder our ability to finance additional loans and investments or to make the distributions required to maintain our status as a REIT.

• An increase in interest rates may have an adverse effect on the market price of our Common Shares and our ability to make distributions to our