Company: SNBH
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001731122-25-000581
Chunk: 20

Company: SENTIENT BRANDS HOLDINGS INC.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 20
---
 assets.

As a result of the Closing of the Reorganization as
described in Items 1.01 and 2.01, the Company ceased being a shell company as such term is defined in Rule 12b-2 under the Exchange Act.

While we believe that as a result of the Closing of
the Reorganization, the Company ceased to be a shell company, the SEC and others whose approval is required in order for shares to be
sold under Rule 144 might take a different view.

Rule 144 is available for the resale of securities
of former shell companies if and for as long as the following conditions are met:

(i) the issuer of the securities
that was formerly a shell company has ceased to be a shell company,

(ii) the issuer of the securities
is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act,

(iii) the issuer of the securities
has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period
that the issuer was required to file such reports and materials), other than Current Reports on Form 8-K; and

14

(iv) at least one year has elapsed
from the time that the issuer filed current comprehensive disclosure with the SEC reflecting its status as an entity that is not a shell
company known as “Form 10 Information.”

Shareholders who receive the Company’s restricted
securities will not be able to sell them pursuant to Rule 144 without registration until the Company has met the other conditions to this
exception and then for only as long as the Company continues to meet the condition described in subparagraph (iii), above, and is not
a shell company. No assurance can be given that the Company will meet these conditions or that, if it has met them, it will continue to
do so, or that it will not again be a shell company.

Fiduciaries investing the assets of a trust
or pension, or profit-sharing plan must carefully assess an investment in our Company to ensure compliance with ERISA.

In considering an investment in the Company of a portion
of the assets of a trust or a pension or profit-sharing plan qualified under Section 401(a) of the Code and exempt from tax under Section
501(a), a fiduciary should consider (i) whether the investment satisfies the diversification requirements of Section 404 of ERISA; (ii)
whether the investment is prudent, since the Company’s common stock shares are