Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 20

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1
Chunk 20
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 per share, subject to specific exemptions. The market price of our common stock is less than $5.00 per share and therefore
would be a “penny stock” according to SEC rules, unless we are listed on a national securities exchange. Under these rules,
broker-dealers who recommend such securities to persons other than institutional accredited investors must:

    ●
    Make
    a special written suitability determination for the purchaser;

    ●
    Receive
    the purchaser’s prior written agreement to the transaction;

    ●
    Provide
    the purchaser with risk disclosure documents which identify certain risks associated with investing in “penny stocks” and
    which describe the market for these “penny stocks” as well as a purchaser’s legal remedies;

    ●
    Obtain
    a signed and dated acknowledgment from the purchaser demonstrating that the purchaser has received the required risk disclosure document
    before a transaction in a “penny stock” can be completed.

As
our common stock is subject to these rules, broker-dealers may find it difficult to effectuate customer transactions and trading activity
in our securities may be adversely affected. As a result, the market price of our securities may be depressed, and you may find it more
difficult to sell your securities.

The
market for penny stocks has experienced numerous frauds and abuses, which could adversely impact investors in our stock.

OTC
Market securities are frequent targets of fraud or market manipulation, both because of their generally low prices and because reporting
requirements are less stringent than those of the stock exchanges such as NASDAQ. Patterns of fraud and abuse include:

    ●
    Control
    of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;

    ●
    Manipulation
    of prices through prearranged matching of purchases and sales and false and misleading press releases;

    ●
    “Boiler
    room” practices involving high pressure sales tactics and unrealistic price projections by inexperienced sales persons;

    ●
    Excessive
    and undisclosed bid-ask differentials and markups by selling broker-dealers;

    ●
    Wholesale
    dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with
    the inevitable collapse of those prices with consequent investor losses.

Our
management is aware of the abuses that have occurred historically in the penny stock market.

16

Among
the factors that could affect our stock