Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 505

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 5
Chunk 505
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 shares of common stock to a related party for cash proceeds in the amount of $20,000 ($0.022
per share).

On
May 10, 2023, the Company sold 1,066,666 shares of common stock at a price of $0.015 per share for cash proceeds of $16,000 to each of
two related party investors (a total of 2,133,332 shares of common stock for aggregate cash proceeds of $32,000).

During
the year ended December 31, 2023, the Company received capital contributions from related parties in the amounts of $10,502.

8.
Mezzanine Equity

Mezzanine
equity, as of December 31, 2024 and 2023, consists of 1,518 shares of preferred stock of Atlanta CBD with redeemable features that allow
the investors (“Investors”) to request repayment of their investment. The Investors are also entitled to profit distributions
equal to the lesser of (i) 25% interest, (ii) the difference between the ownership percentage of management and 50%, which will be distributed
to management, until a 35% profit goal achieved. Preferred shareholders are entitled to a return of their investment upon 15 days’
notice given to the Company after any distribution. No payments have been made on the Mezzanine Equity as of December 31, 2024.

F-13

9.
Stockholders’ Equity

The
Company is authorized to issue up to 100,000,000 shares of common stock, $0.0001 par value per share. At December 31, 2024 and 2023,
the Company had 44,337,557 and 42,547,484 shares of common stock issued and outstanding, respectively.

In
January 2021, the Company entered into a Stock Purchase Agreement with the owners of Atlanta CBD, Inc. and acquired 51% of the common
stock of Atlanta CBD, Inc. in exchange for 13,600,000 shares of the Company’s common stock. This transaction was accounted for
using common control accounting; accordingly, the transaction was recorded as if it occurred on January 1, 2020. The amount of $55,412
was recorded to additional paid-in capital, $22,350 was charged to minority interest, and $23,263 was recorded to accumulated deficit.

Equity
transactions during the year ended December 31, 2024:

On