Company: TCRG
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001185185-25-000206
Chunk: 102

Company: Cannaisseur Group Inc.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 102
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 advisory votes on executive compensation or golden parachute arrangements, although
some of these exemptions are available to us as a smaller reporting company (i.e. a company with less than $75 million of its voting
equity held by affiliates). We have elected to adopt these reduced disclosure requirements. We cannot predict if investors will
find our common stock less attractive as a result of our taking advantage of these exemptions. If some investors find our common
stock less attractive as a result of our choices, there may be a less active trading market for our common stock and our stock price
may be more volatile.

18

We
do not expect to pay any cash dividends in the foreseeable future.

We
intend to retain our future earnings, if any, in order to reinvest in the development and growth of our business and, therefore, do not
intend to pay dividends on our common stock for the foreseeable future. Any future determination to pay dividends will be at the discretion
of our board of directors and will depend on our financial condition, results of operations, capital requirements, and such other
factors as our board of directors deems relevant. Accordingly, investors may need to sell their shares of our common stock to realize
a return on their investment, and they may not be able to sell such shares at or above the price paid for them.

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