VANCOUVER, BC / ACCESSWIRE / July 24, 2023 /Stock Trend Capital Inc. (CSE:PUMP) (FRA:SCF) (Pink Sheets:STOCF) ("Company" or "Stock Trend"), is pleased to announce that it intends to complete a strategic investment to acquirea 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 intends to enter into (the "Share Purchase Agreement") with an arm's length party, the aggregate consideration of $855,000 will be 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 will acquire 26,666,667 common shares in the capital of YOUNET, representing 20% of YOUNET's issued and outstanding common shares following the Acquisition.
Additional Information
The Acquisition is expected to close on or before July 31, 2023, and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange (the "CSE"). The management and the board of directors of both the Company and Rabbit AI unanimously support the Acquisition.
The Acquisition is an independent and arm's-length transaction. No member of Rabbit AI's board of directors and none of Rabbit AI's shareholders are related parties to the Company. No new 10% shareholder of the Company will be created as a result of the Acquisition.
In connection with the Acquisition, the Company has agreed to pay 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.
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
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 anticipated timing and closing of the Acquisition, the parties entering into the Share Purchase Agreement, the Company receiving any and all required regulatory approvals, including CSE approval, the anticipated synergies and integration stemming from completing the Acquisition, the ability of the Company to finance the Acquisition; Rabbit AI's future business plans and their ability to grow in the AI sector upon their anticipated timelines, Rabbit AI'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 entering into the Share Purchase Agreement and completing the Acquisition upon the terms and in the timelines stated above, the Company achieving the anticipated synergies and integration stemming from completing the Acquisition, and Rabbit AI 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 Company not completing the Acquisition at all or upon different terms and timelines, the inability of the Company to finance the Acquisition, the inability for the Company to achieve anticipated synergies and integration stemming from completing the Acquisition, and the inability of Rabbit AI 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.
