Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 24

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 24
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We
can sell additional shares of common stock without consulting stockholders and without offering shares to existing stockholders, which
would result in dilution of existing stockholders’ interests in the Company and could depress our stock price.

Our
Articles of Incorporation authorize 100,000,000 shares of common stock, par value $0.0001 per share, of which 44,337,557 were outstanding
as of December 31, 2024. Moreover, our Board of Directors is authorized to issue additional shares of our common stock and preferred
stock. Although our Board of Directors intends to utilize its reasonable business judgment to fulfill its fiduciary obligations to our
then existing stockholders in connection with any future issuance of our capital stock, the future issuance of additional shares of our
common stock or preferred stock convertible into common stock would cause immediate, and potentially substantial, dilution to our existing
stockholders, which could also have a material effect on the market value of the shares.

Because
we will be subject to “penny stock” rules, the level of trading activity in our stock may be
reduced.

Broker-dealer
practices in connection with transactions 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