Company: AVCRF
Filing Date: 2025-06-16
Form Type: 20-F
Source: 0001641172-25-015266
Chunk: 2

Company: Avricore Health Inc.
Filing Date: 2025-06-16
Form: 20-F
Item: Item 3
Chunk 2
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the Company raises further funds through equity issuances, the price of its securities could decrease due to the dilution caused by the
sale of additional shares.

Additional
funds raised by the Company through the issuance of equity or convertible debt securities will cause the Company’s current shareholders
to experience dilution and possibly lower the trading price of its shares. Such securities may grant rights, preferences or privileges
senior to those of the Company’s common shareholders.

The
Company has issued a limited number of shares out of its authorized capital of an unlimited number of common shares, which could be dilutive
and negatively affect the share price.

Having
an unlimited number of authorized but unissued common shares could allow the Company’s Directors and Officers to issue a large
number of shares without shareholder approval, leading to significant dilution of current shareholders and possible lowering of the share
price.

   5  

The
Company could enter into debt obligations and not have the funds to repay these obligations.

The
Company does not have any contractual restrictions on its ability to incur debt and, accordingly, the Company could incur significant
amounts of indebtedness to finance its operations. Any such indebtedness could contain covenants, which would restrict the Company’s
operations. The Company might not be able to repay indebtedness.

The
Company could enter into contractual obligations and not have the funds to pay for these obligations.

The
Company does not have any contractual restrictions on its ability to enter into binding agreements and, accordingly, the Company could
incur significant obligations to third parties including financial obligations. Any such obligations could restrict the Company’s
operations and the Company might not be able to pay for its commitments. If the Company cannot meet its commitments, legal action could
be taken against the Company. Any such actions could further restrict the Company’s ability to conduct its business or could cause
the Company to go out of business.

The
Company’s information technology systems are susceptible to certain risks, including cyber security breaches, which could adversely
impact the Company’s operations and financial condition.

The
Company’s operations involve information technology systems that process, transmit and store information about our suppliers, customers,
employees, and financial information. These systems face threats including telecommunication failures, natural disasters, and cyber security
threats, including computer viruses, unauthorized access to our systems, and other security issues. While the Company has implemented
security measures to protect these systems, such threats change and evolve almost daily. There is no guarantee these actions will secure
the information systems against