Company: SACH
Filing Date: 2025-11-14
Form Type: 424B2
Source: 0001628280-25-052333
Chunk: 26

Company: Sachem Capital Corp.
Filing Date: 2025-11-14
Form: 424B2
Chunk 26
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 net proceeds from this offering will be invested in short-term, investment-grade, interest-bearing instruments and government securities. These investments may not yield favorable returns to our shareholders.

#### Possible Application of “Fast-Pay Stock” Rules
Under Treasury Regulations promulgated under Section 7701(l) of the Code, if stock of a corporation is structured such that dividends paid with respect to the stock are economically (in whole or in part) a return of such stockholder’s investment (rather than a return on such stockholder’s investment), such stock could be characterized as “fast-pay stock”. Whether stock is fast-pay stock is determined based on all the facts and circumstances, including any related agreements such as options and redemption agreements applicable to preferred shares. Under such regulations, unless clearly demonstrated otherwise, stock is presumed to be “fast-pay stock” if issued for an amount that exceeds (by more than a de minimis amount) the amount at which the stockholder can be compelled to dispose of the stock, or if the stock has a dividend that is reasonably expected to decline as opposed to a fixed dividend such as the dividend on preferred shares.

Although not free from doubt, even if shares of the Series A Preferred Stock are issued for a price that exceeds their redemption price by more than a de minimis amount, we do not believe such shares would be, and we do not intend to treat such shares as, fast-pay stock for U.S. federal income tax purposes because such shares were not structured to have the features described above. However, while there is limited authority addressing whether stock

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such as the Series A Preferred Stock is fast-pay stock, we cannot guarantee that the Internal Revenue Service (“IRS”) will not successfully challenge our position. If the IRS were to successfully challenge our position, taxable U.S. shareholders of Series A Preferred Stock may be subject to adverse tax consequences. Prospective investors should consult their tax advisors as to the application of these rules to their individual circumstances.

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### USE OF PROCEEDS
We intend to use the net proceeds from the sale of shares of Series A Preferred Stock offered under this Prospectus Supplement for general corporate purposes and working capital, which may include repaying existing indebtedness, investing in real estate opportunities other than as a mortgage lender, and acquisitions of existing mortgage loan portfolios or real estate finance companies as suitable opportunities arise. Pending such use, the net proceeds from the sale of shares of Series A Preferred Stock may be