Company: SACH
Filing Date: 2025-11-14
Form Type: 424B2
Source: 0001628280-25-052333
Chunk: 50

Company: Sachem Capital Corp.
Filing Date: 2025-11-14
Form: 424B2
Chunk 50
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 under Section 305(c) or Section 7701(l) of the Code as we do not believe that such shares are redeemable at a price that exceeds the redemption price by more than a de minimis amount or that otherwise provides for dividends that are economically a return of the holder’s investment (rather than a return on the holder’s investment.) Moreover, for purposes of these discussions, we assume that the holders of our Series A Preferred Stock hold their shares as capital assets for U.S. federal income tax purposes, which generally means property held for investment.

In connection with this offering of Series A Preferred Stock, we expect to receive an opinion of the law firm of Kurzman Eisenberg Corbin & Lever, LLP to the effect that, commencing with our taxable year ended December 31, 2017, we have been organized and have operated in conformity with the requirements for qualification and taxation as a REIT under the Code, and our current and proposed method of operation will enable us to continue to meet the requirements for qualification and taxation as REITs under the Code. It must be emphasized that an opinion of counsel is expressed as of the date given, is based on various assumptions relating to how we and our affiliated entities were organized and operate and is conditioned on the accuracy and completeness of representations and covenants made by our management and the management of our affiliated entities regarding their respective organization, assets and income, and the past, present and future conduct of their business operations.

While we intend to operate so as to qualify as a REIT, given the highly complex nature of the rules governing REITs, the ongoing importance of factual determinations and the possibility of future changes in circumstances, no assurance can be given by Kurzman Eisenberg Corbin & Lever, LLP or by us that we will so qualify for any particular year. Kurzman Eisenberg Corbin & Lever, LLP will have no obligation to advise us or the holders of our stock of any subsequent change in the matters stated, represented or assumed, or of any subsequent change in the applicable law. You should be aware that opinions of counsel are not binding on the Internal Revenue Service (“IRS”), and no assurance can be given that the IRS will not challenge the conclusions set forth in such opinions.

Qualification and taxation as a REIT depend on our ability to meet on a continuing basis, through actual operating results, distribution levels, and diversity of stock ownership, various qualification requirements imposed upon REITs by the Code and the Treasury regulations issued thereunder, including requirements relating to the