Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 2

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 2
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 Board of Directors or with any change of control events involving Atlanta CBD. The Conflict-of-Interest
agreement is a good faith effort by the parties to balance the involvement of Ms. Gogo and Mr. Carter with both TCRG and Atlanta CBD.
While the Conflict-of-Interest agreement does not prevent Ms. Gogo and Mr. Carter from taking actions that prioritize the interests of
Atlanta CBD at the expense of the interests of TCRG, TCRG is the culmination of their goal to grow into a vertically integrated company.
It is therefore in the best interest of TCRG and Atlanta CBD to work towards the same goal, to ensure the growth and stability of TCRG.
Ms. Gogo and Mr. Carter place the upmost importance on the success of TCRG, however, the Conflict-of-Interest agreement cannot guarantee
that they will not take actions that prioritize the interests of Atlanta CBD over the interests of TCRG.

Atlanta
CBD has 1,518 shares of preferred stock outstanding. The preferred stock has redeemable features that allow the shareholders to request
repayment of their investment. The shareholders are also entitled to profit distributions equal to the lesser of (i) 25% interest on
their investment, or (ii) the difference between the ownership percentage of management and 50%, which will be distributed to management,
until a 35% profit goal achieved. Shareholders are entitled to a return of their investment upon 15 days’ notice given to Atlanta
CBD after any distribution. Atlanta CBD’s stock is not convertible into shares of TCRG’s common stock, and to date Atlanta
CBD has not made any profit distributions to such preferred shareholders. Shareholders may also receive interest, which is capped at
thirty-five percent (35%) of the shareholders’ interest.

Product
Formulation and Production

TCRG
uses its commercial suppliers and contract manufacturers for its product research and development, formulation, quality testing, production
and packaging. Through Atlanta CBD, TCRG has access to the suppliers and manufacturers used by Atlanta CBD and TCRG will utilize these
relationships as we develop and grow our health and wellness business. These suppliers and manufacturers hold, as required, the necessary
regulatory and other licenses/permits specific to each one’s activity. Atlanta CBD outsources fulfillment as well. In addition
to direct sales, Atlanta CBD has the option to drop ship its products. This allows the third-party supplier to ship the merchandise directly
to such customers.

Sales