Company: LIFD
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001096906-25-000346
Chunk: 157

Company: LFTD PARTNERS INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 157
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 on our outstanding Series A and Series B Convertible Preferred Stock, is collectively referred to as the “Allocated Capital”.

If, notwithstanding these impediments, the Company and/or Lifted is able to raise debt or equity capital that is in addition to the Allocated Capital (the “Growth Capital”), then the Growth Capital would likely be used in connection with one or more of the following: (1) stock buybacks if permitted by the Lender; (2) an expansion of the 5511 Building; or (3) for potential acquisitions. 

While the Company would prefer to engage in 100% stock-for-stock acquisitions, potential acquisition candidates frequently prefer that a significant portion of the acquisition consideration be in cash. Also, the process of conducting a due diligence investigation and audit of potential acquisition candidates can be very expensive and requires cash. Also, some potential acquisitions may only make sense if the Company is in a position to inject cash into the potential acquisition candidates simultaneously with the closing of the acquisitions, in order to pay off accrued liabilities or to provide needed growth capital.

There is no assurance that the Company and Lifted will be able to obtain the additional Growth Capital needed to accelerate our growth beyond current levels. Our ability to obtain Growth Capital will depend on many factors, such as: whether profitable Cannabis Companies or other companies are interested in merging with us and the pricing and other terms of proposed mergers; interest rates; the level of economic stress on Lifted’s distributors and customers; governmental prohibitions, regulations and taxation of hemp-derived cannabinoids such as delta-8-THC and delta-9-THC and of marijuana; investor demand; our performance and reputation;  the price of the Company’s common stock; and other factors beyond our control. 

Our inability to raise additional Growth Capital could result in the delay or indefinite postponement of our growth objectives.

There can be no assurance or guarantee that any additional Growth Capital will be available on acceptable terms and conditions, if at all. The lack of availability of additional Growth Capital could have a material adverse effect on our Company and the trading price of our common stock.

Acquisition Process

The structure of the Company’s participation in business opportunities and ventures will continue to be situational. 

The Company is likely to structure future acquisitions as an acquisition of 100% of a target company’s equity ownership interest via a merger that qualifies as a so-called tax-free reorganization, or as an asset purchase. However, in unusual situations, the Company may be willing to consider alternative deal structures