VANCOUVER, BC / ACCESSWIRE / August 1, 2023 / Stock Trend Capital Inc. (CSE:PUMP)(FRA:SCF)(OTC PINK:STOCF) ("Company" or "Stock Trend"), is pleased to announce that it has closed the strategic investment to acquire over 20% interest in YOUNET ("YOUNET") from an arm's length party, for total aggregate consideration of $855,000 (the "Acquisition").
YOUNET is a privately held Canadian company developing an artificial intelligence ("AI") platform called Rabbit AI. Rabbit AI is being designed to handle tasks normally done by a personal assistant. Depending on the needs of the user, Rabbit AI may produce written content or responses such as emails, texts and documents, and is being designed to sift through communications and data to provide replies for its master.
Pursuant to the terms of a share purchase agreement that the Company entered into on August 1, 2023 (the "Share Purchase Agreement") with an arm's length party, the aggregate consideration of $855,000 was satisfied through:(i) $250,000 paid in cash upon closing the Acquisition (the "Cash Consideration"), and (ii) $605,000 satisfied through the issuance of 27,500,000 common shares in the capital of the Company (each a "Common Share") on the basis of a deemed price per Common Share equal to $0.022 per Common Share (the "Acquisition Shares, together with the Cash Consideration the "Acquisition Consideration"). In exchange for the Consideration, the Company acquired 26,666,667 common shares in the capital of YOUNET, representing over 20% of YOUNET's issued and outstanding common shares following the Acquisition.
The Company sees the investment in YOUNET as providing the shareholders of the Company with value as the Company looks to diversify into the disruptive AI sector, and specially YOUNET as it is well-positioned to build the technology that targets a highly lucrative established industry using their proprietary AI technology. The Company expects the YOUNET shares acquired to increase in value as YOUNET comes closer to bringing its disruptive technology to the market.
Additional Information
The Acquisition is an independent and arm's-length transaction. No member of YOUNET's board of directors and none of YOUNET's shareholders are related parties to the Company. No new 10% shareholder of the Company was created as a result of the Acquisition.
In connection with the Acquisition, the Company has paid an arm's length party, a finder's fee equal $100,000 to be paid on closing the Acquisition, to be paid in Common Shares, being 4,545,454 Common Shares at $0.022 per Common Share.
Amendment to Investment Policy
As previously announced, the Company has amended its investment policy to broaden and diversify the eligible industries of its investment targets to permit the Company to make strategic investments within the Artificial Intelligence sector. The amended investment policy is available under the Company's profile on SEDAR at www.SEDAR.com.
About Stock Trend
Stock Trend Capital Inc. is an investment issuer primarily focused on the Artificial Intelligence (AI) and Canadian cannabis industries. The issuer intends to focus on investing in private and public entities with strong intellectual property, exceptional management and high growth potential that may be strategically positioned in the market.
On behalf of the Board of Directors of
STOCK TREND CAPITAL INC.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Anthony Durkacz
CEO, Director
Telephone: (416) 720-4360
Email: anthony@stocktrend.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward- looking statements.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's future business plans, the Company receiving any and all required regulatory approvals, including CSE approval, and the anticipated synergies and integration stemming from completing the Acquisition; YOUNET's future business plans and their ability to grow in the AI sector upon their anticipated timelines, YOUNET's future growth potential, and the Company's ability to become a leading software as an AI technology platform.
Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company's ability to continue as a going concern; the Company's ability to continue to develop revenue-generating applications; continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the continued growth of the Company; the Company fulfilling its future business plans, the Company achieving the anticipated synergies and integration stemming from completing the Acquisition, and YOUNET fulfilling their future business plans and growing their business in the AI sector upon the terms.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company's inability to continue as a going concern; the Company's inability to continue to develop revenue-generating applications; the Company not receiving approval from the relevant governmental and/or regulatory authorities; the inability of the Company to grow; the Company being unable to fulfill its future business plans, the inability for the Company to achieve anticipated synergies and integration stemming from completing the Acquisition, and the inability of YOUNET to fulfill their future business plan or grow their business in the AI sector upon the terms and in the timelines stated above.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
SOURCE: Stock Trend Capital Inc.
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