Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 103

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 103
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 in “penny stocks” are regulated by penny stock rules adopted by the Securities
and Exchange Commission. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered
on some national securities exchanges). The penny stock rules require a broker-dealer to deliver to its customers a standardized risk
disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market prior to
carrying out a transaction in a penny stock not otherwise exempt from the rules. The broker-dealer also must provide the customer with
current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and,
if the broker-dealer is the sole market maker, the broker-dealer must disclose this fact and the broker-dealer’s presumed control
over the market, and monthly account statements showing the market value of each penny stock held in the customer’s account. In
addition, broker-dealers who sell these securities to persons other than established customers and “accredited investors”
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s
written agreement to the transaction. Consequently, these requirements may have the effect of reducing the level of trading activity,
if any, in the secondary market for a security subject to the penny stock rules.

Financial
Industry Regulatory Authority (FINRA) sales practice requirements may also limit your ability to buy and sell our stock, which could
depress our share price.

FINRA
rules require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers
must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives
and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced
securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend
that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market
for our shares, depressing our share price.

19

Item
1B. Unresolved Staff Comments

None.

Item
1C. Cybersecurity

Cyber
Risk Management and Strategy

We
recognize the importance of